Financial Results for the Fiscal
Year Ended March 2024
Presentation Materials

May 30, 2024

TSE Prime Market
Securities code: 5715

IndexFinancial Results / Full-Year Forecasts (Consolidated)
Consolidated Results
Financial Results by Segments
References

P.3-6
P.7-14
P.15-17

Progress of the Medium-Term Business Plan
Reduction of Strategic Shareholdings
Shareholder Return
Earnings Plan
Growth Strategy

P.3-17

P.19-28

P.20
P.21
P.22
P.23-282

Financial Results for the FY2023 (Consolidated) &Financial Forecasts for the FY2024 (Consolidated)[Financial Results]
FY2021MillionYen
MillionYen

FY2022VS FY2022
Difference

FY2023

FY2024(Forecast)

VS FY2023
Difference

199,097

214,190

188,255(-)25,934

187,700(-)555

7,734

9,031

8,524

(-)507

8,700

175

3.9

4.2

4.5

0.3

4.6

0.1

8,996

9,348

10,384

1,036

8,000

(-)2,384

Profit attributable toowners of parent

MillionYen
Million
Yen

6,477

6,211

16,0979,885

14,000(-)2,097

Annual dividends

Yen

50

50

55

5

60

5

Net sales
Operating profit
Operating margin
Ordinary profit%

300,000

20,000Net sales (Million Yen)
Operating profit (Million Yen)
250,000[Financial Conditions]

214,190
199,097

FY2022

FY2023Difference

200,000

9,031

Net assets

MillionYen
MillionYen

Capital adequacy ratio

%

44.2

50.0

5.8

50,000Net assets per share

Yen

2,700.87

3,493.08

792.210

Total Assets

ROE%

232,745259,878

27,132150,000

106,050

133,272

27,222100,000

7,734

15,000188,255

187,700

8,524

8,700

10,000

5,000

6.2

13.8

7.6

0
FY2021

FY2022

FY2023

FY2024(Forecast)3

Transition of the management indicators of Medium-Term Business Plan 2025
[Management Indicators]
FY2021

FY2022Million
Yen

7,734

9,031

8,524

Approx. ¥13,000 Million

ROE%

Debt-to-equity ratio

TimesInterest-bearing debt/EBITDA ratio

Times

Consolidated total return on equity%%

Annual dividends

Yen

6.2
0.6
4.8
2.8
35.1
50

13.8
0.4
4.5
3.1
40.8
55

Approx. 8%
0.5x range
3x range
3％ or more

Strategic shareholdings ratio

6.9
0.7
5.6
2.4
38.0
50

Share buyback

Million
Yen

334

888

1,620

Operating profit

14

ROE

13

20

12

13.8

10

8.9

8
6.2
6

8.9
7.9

6.8
7.6

9

8.6

7.8

8.9

7.7

15

8.5

10

5.5

5.9

5.9

5.7

5.8

6.9

8
6.2

5
0

2
0

15.0

-3.6
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

-5
2025

Approx. ¥1,500-2,000 Million
Interest-Bearing Debt/EBITDA Ratio
Debt-to-Equity Ratio
5.0
4.0

12.6

12.0

3.0
0.0

3.0

7.9

9.0
6.0

3.3

¥50 or more per share

15.7

6.5
7.5

Less than 20%by March 31, 2025

Transition of Debt-to-Equity Ratio /Interest-Bearing Debt/EBITDA ratio
18.0

15.9

2.1

(Medium-Term Business Plan image)Operating profit

Transition of Operating Profit / ROE

4

FY2025

FY2023

6.8
1.9

1.6

1.4

6.8

7.6

7.4
6.6

5.9

5.7

5.6

4.8

2.0

4.5
3.0

1.2

1.1

0.9

0.9

0.9

0.9 0.8

1.0

0.4
0.7

0.6

0.5

0.0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 列2 20254

Consolidated Income Statement(Unit: Million yen)

FY2022
Net sales
Cost of sales(Gross profit)
Selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Administrative expenses of inactive mountain
Other
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Extraordinary losses
Demolition expenses of a rental building
Loss on liquidation of investments and loans in affiliated companies

Other
Profit before income taxes
Income taxes – current
Income taxes – deferred
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

214,190
185,575
28,615
19,583
9,031
3,146
847
1,462
836
2,829
501
860
814
654
9,348
410
47
362
0
1,252
470
781
8,506
2,811
(-)762
6,457
245
6,211

FY2023
188,255
160,010
28,245
19,721
8,524
3,655
991
539
1,162
961
1,795
510
816
467
10,38416,092
13,433
2,659
3,224
458
2,058
708
23,252
5,378
1,552
16,321
224
16,097

Difference(-)25,934(-)25,565(-)369137(-)507509
143
539(-)300125(-)1,034
9(-)8602(-)186
1,036
15,682
13,385
2,296
(-)0
1,972
(-)12
2,058
(-)72
14,745
2,566
2,315
9,864
(-)21
9,885

- Equity in earnings of affiliates increased ¥1.4 billion
from previous fiscal year.
- A loss in the FY2022 was due to deteriorating
performance of Hibi Kyodo Smelting (as for regularbiennial repair year) etc.

Transfer of a portion of co-ownership of the former
Furukawa Osaka Building site and other land.

Gain on sales of investment securities resulting fromselling a part of the strategic shareholdings

Loss on the transfer of Cariboo Copper shares(* Owns a 25% interest in the Gibraltar Copper Mine)

5Consolidated Balance Sheet / Consolidated Cash Flow
Consolidated Balance Sheet(Unit: Million yen)
FY2022

FY2023Difference

AssetsCurrent assets

99,882

99,636(-)246

Non-current assets

132,862

160,241

27,37890,981

92,045

1,063

317

342

25

41,56367,853

26,289232,745259,878

27,132

Property, plant and equipment
Intangible assets
Investments and other assets
Total assets- Increase in long-term accounts receivable, mainly due to the recording ofproceeds from the transfer of a portion of co-ownership of the former
Furukawa Osaka Building site and other land (up ¥12.5 billion)- Increase in investment securities, reflecting a rise in the share price of listed
stocks (up ¥12.6billion)
etc.

The issuance of bonds for the first time in about 23 years to diversify funding
sources.

(Unit: Million yen)Interest-Bearing Debt
FY2022

Liabilities
Current liabilities

63,111

51,669(-)11,442

Non-current liabilities

63,58374,935

11,352

126,695

126,605(-)89

Total liabilities
Net assets
Shareholders’ equity

83,971

96,54912,577

Share capital

28,20828,208-2

2-

Retained earnings

58,84773,046

14,198Treasury shares(-)3,086(-)4,707(-)1,621

Capital surplus

Accumulated othercomprehensive income

18,974Non-controlling interests

3,103

3,365

261

Total net assets

106,050

133,272

27,222

Total liabilities and net assets

232,745259,878

27,13233,35814,383

FY2023Difference

Short-term

7,449

493

(-)6,955

Long-term

55,39952,895(-)2,503

Bonds payable

-

5,000

5,000

Total

62,84858,389(-)4,459

Consolidated Cash Flow

(Unit: Million yen)

FY2022

FY2023Difference

Cash flows from financing activities

6,148(-)1,617(-)5,934

10,492
1,915(-)8,446

4,344
3,533
(-)2,512

Cash and cash equivalents

13,60618,193

4,587

Cash flows from operating activities
Cash flows from investing activities

6Financial Results by Segment (Consolidated)(Unit: Million yen)

Net sales

FY2022

Machinery
Industrial
Rock Drill
UNIC
Materials
MetalsElectronics
Chemicals
Real Estate
Other
Total

Operating profit
Machinery
Industrial
Rock Drill
UNIC
Materials
MetalsElectronics
Chemicals
Real Estate
Other
Adjustment
Total

81,658
17,94335,752
27,961
126,804
111,424
6,926
8,454
2,056
3,671
214,190
FY2022
6,093
1,515
3,030
1,547
2,309
1,276
500
532
835
(-)133(-)73
9,031

FY202382,085
15,54838,682
27,853
100,388
84,712
6,766
8,908
1,873
3,908
188,255
FY2023
5,696
389
4,148
1,158
2,765
1,945
212
608
470
(-)293(-)114
8,524

Difference427(-)2,394
2,930(-)108(-)26,416(-)26,711(-)159454(-)182237(-)25,934
Difference(-)397(-)1,125
1,117(-)389456
668(-)28875(-)365(-)160(-)41(-)507

FY2024(Forecast)
87,70019,10036,20032,40093,60076,700
7,700
9,200
2,100
4,300
187,700
FY2024(Forecast)
7,400
1,900
3,100
2,400
1,000
0
400
600
600
(-)200(-)1008,700

VS FY2023
Difference

5,614
3,551
(-)2,482
4,546(-)6,788(-)8,012
933
291
226
391
(-)555VS FY2023
Difference

1,703
1,510
(-)1,048
1,241(-)1,765(-)1,945
187
(-)8
129
93
14
175

Comparison to theprevious fiscal year

FY2023

JPY rate per US$

144.6 ¥/$

9.1 ¥/$LME copper price

8,362 &/ton(-)189 &/ton

FY2024(Forecast)Comparison to theprevious fiscal year

JPY rate per US$

145.0 ¥/$

0.4 ¥/$LME copper price9,000 &/ton

638 &/ton

Regard to exchange rate sensitivity
Operating income increase annually about ¥100 million
due to ¥1 week to US dollar.
- Increase about ¥60 million in Machinery business(mainly Rock Drill)- Increase about ¥40 million in Metals segment
FY2024(Forecast)Comparison to theprevious fiscal year

Net sales

Million Yen

187,700(-)555

Operating profit

Million Yen

8,700

175

Ordinary profit

Million Yen

8,000(-)2,384

Profit attributable toowners of parent

Million Yen

14,000(-)2,097

Extraordinary income
Expect gain on sale of investment securities resulting
from the sale of strategic shareholdings7Increase/Decrease in Earnings by Segment (Consolidated)
Billion yen

Real Estate, Other

Net sales214.1 billion+2.9 billion(-)2.4 billion
188.2 billion+0.4 billion+4.5 billion+3.5 billion(-)0.1 billion+0.0 billion(-)0.1 billion+0.2 billion+0.9 billion

Details about Industrial Machinery
187.7 billion+0.6 billion

FY2024 Forecast

Chemicals

MetalsUNIC

Electronics(-)8.0 billion

Rock Drill

Industrial

FY2023 Results

Real Estate, Other

ChemicalsElectronics

MetalsUNIC

Rock Drill

Industrial

FY2022 Results(-)2.3 billion(-)26.7 billion

segment, Rock Drill segment, UNIC
segment, Metals segment,
Electronics segment and Chemicals
segment are explained in thefollowing pages.

Billion yen
Real Estate business

Operating profit(-)0.5 billion
9.0 billion+0.6 billion+1.1 billion+1.2 billion+1.5 billion

FY2023 due to lower office rents and(-)0.0 billion

8.5 billion+0.1 billion+0.2 billion

8.7 billion

tenant replacements of Muromachi
Furukawa Mitsui Building(-)1.0 billion

FY2024 Forecast

Real Estate, Other

Chemicals

MetalsUNIC

Rock Drill

Electronics(-)1.9 billion

Industrial

FY2023 Results

Real Estate, Other

ChemicalsElectronics

MetalsUNIC

Rock Drill

Industrial

FY2022 Results(-)0.2 billion(-)0.3 billion(-)1.1 billion+0.0 billion

Both sales and profits declined in the(commercial name: COREDO
Muromachi 2), our main facility.
Forecast an increase in both sales
and profits based on an expected
rise in office occupancy rates in the
FY2024.

8

Results by Segments (Industrial Machinery Segment)
Net sales (Unit: Million yen)

- Main factors of FY2023 results[Net sales] ¥15.5 billion [(-)¥2.3 billion)]+3.5 billion(-)2.3 billion
19,10017,943[Operating profit] ¥0.3 billion [(-)¥1.1 billion)]- Significant decrease in material machinery due to additional costs incurred as a result of plant construction delays.

15,548FY2022

FY2023

Order backlog

VS FY2022
Difference¥15.8 billion¥1.6 billion+1.5 billion

1,700

1,515

389
FY2022

FY2023

FY2024(Forecast)

Operating profit (Unit: Million yen)(-)1.1 billion- Bridges and belt conveyors posted higher revenues with volume-based sales.
- Material machinery sales were flat, but pump equipment posted lower revenue, especially due to significant
decline in environmental product.

- Main factors of FY2024 forecasts[Net sales] ¥19.1 billion [+¥3.5 billion][Material machinery]
Crusher plants, quarry plants, etc.
[Bridges]
Ofuna-Terada Elevated Bridge Hachioji South Bypass, construction of Shimizu IC
third viaduct, construction of Takasu 1st bridge and other two bridges HigashiKyushu expressway, construction of Joyo bridge Kyoto prefecture, etc.
[Belt conveyors]
Concrete transport equipment for dam construction, earth and sand transport
equipment for tunnel excavation, etc.

- Forecast an overall increase in net sales, with a significant increase in material machinery sales, as well as inpumps, pump equipment, and bridges, in addition to a large-scale project for belt conveyors.

[Operating profit] ¥1.9 billion [+¥1.5 billion]

FY2023

FY2024(Forecast)- Operating profit expected increase due to higher sales. No additional cost incurred for material machinery.

- Ref: Features, destinations, market share, etc. of the main products
Pumps
Material machinery[Features][Destinations]

Pumps products superior in the durability
and abrasion resistance which was
amassed through mine development.
Shield tunnel construction sites,
sewage treatment plants, etc.

Infrastructure division

Supports section plants including
machine manufacturing and sales.

[Features][Destinations]

Quarries, limestone mines, steel
works, etc.

[Destinations] New construction of steel bridges,
Construction of conveying earth and sand, etc.

[Attention][Market share][Market share]
Sewage Pumps

Slurry Pumps

Comprehensive capability to undertake all
the processes from the design ofconstruction work to its execution.

[Features]

Crushers

Belt conveyors attract attention whichinstead of dump trucks to transport
earth and sand. Inquiries are increasing.

9

Results by Segments (Rock Drill Segment)- Main factors of FY2023 results

Net sales (Unit: Million yen)(-)2.4 billion+2.9 billion

38,682
36,20035,752

FY2022

FY2023

FY2024(Forecast)

Operating profit (Unit: Million yen)(-)1.0 billion+1.1 billion

4,148
3,030

FY20223,000

FY2023

FY2024(Forecast)[Net sales] Japan ¥14.4 billion, Overseas ¥24.2 billion [Japan +¥0.2billion, Overseas +¥2.6 billion]- Increased due to an increase in shipments of auxiliary parts for hydraulic crawler drills and other equipment and anincrease in orders for maintenance business in Japan.
- Overseas, overall sales increased due to a significant increase in shipments of hydraulic breakers and large
hydraulic crawler drills in North America.
As well as in the Middle East and Africa, where shipments of hydraulic crawler drills increased, and the weaker yen
also had the effect of increasing sales.

[Operating profit] ¥4.1 billion [+¥1.1 billion]- Significant increase mainly due to increased sales in North America, as well as the effect of yen depreciation andother factors.

- Main factors of FY2024 forecasts[Net sales] Japan ¥14.4 billion, Overseas ¥21.8 billion [Japan flat, Overseas (-)¥2.4 billion]- In Japan, the trend of reluctant purchases of hydraulic breakers for rental use has bottomed out, and sales ofhydraulic crushers and hydraulic crawler drills are also expected to increase, but sales of tunnel drill jumbos are
expected to decline due to lower shipments, and overall sales are expected to decrease.
- Overseas sales are expected to fall sharply due to a lull in demand, especially in North America, which isexperiencing a reactionary decline from the previous year's advance.

[Operating profit] ¥3.1 billion [(-)¥1.0 billion]- Operating profit expected to decrease by ¥1 billion mainly due to lower sales in North America.

- Ref: Features, destinations, market share, etc. of the main products
Hydraulic breakers
Hydraulic crawler drills[Features]

Wide range of models from small tosuper large size.
High-quality and high-striking power.

[Destinations]

Strip mine such as quarries, etc.
Civil engineering work and atconstruction sites, etc.

[Features]

Accurate and speedy drilling technology
suitable for the rock conditions.

[Features]

Many proven results in mountaintunnel and large tunnel constructions.

[Destinations]

Strip mine such as limestone mines, etc.
Infrastructure work in overseas, etc.

[Destinations]

Mountain tunnel construction sites,
Dam headrace construction sites, etc.

[Market share][Market share]

Tunnel drill jumbos[Market share]
Tunnel drill jumbos

Hydraulic breakers
Hydraulic crawler drills

10Results by Segments (UNIC Segment)
Net sales (Unit: Million yen)

- Main factors of FY2023 results

32,400[Net sales] Japan ¥21.5 billion, Overseas ¥6.3 billion [Japan +¥1.4 billion, Overseas (-)¥1.5 billion]- In Japan, truck production delays are recovering, and the number of trucks supplied increased comparedto the previous fiscal year, leading to an increase in shipments of UNIC cranes and higher sales.
- Overseas sales decreased due to lower shipments to China, Southeast Asia, Europe, etc.

FY2024(Forecast)[Operating profit] ¥1.1 billion [(-)¥0.3 billion]- Decreased due to a worsening cost ratio as a result of continued product shipments before priceincrease in response to soaring prices of steel and other raw materials.

+4.5 billion(-)0.1 billion
27,961

27,853

FY2022

FY2023Operating profit (Unit: Million yen)

- Main factors of FY2024 forecasts+1.2 billion(-)0.3 billion
2,200
1,547

FY2022

1,158
FY2023

FY2024(Forecast)[Net sales] Japan ¥23.9 billion, Overseas ¥8.5 billion [Japan +¥2.3 billion, Overseas +¥2.1 billion]- Net sales are expected to increase due to an increase in shipments resulting from an increase in truck
production in Japan, and orders for UNIC cranes are expected to increase.
- Overseas sales are expected to increase due to stronger sales in Europe, the US, Southeast Asia, andthe Middle East.
[Operating profit] ¥2.4 billion[+¥1.2 billion]- Operating profit is expected to increase due to the increase in sales as well as the completion of productshipments before the price increase.

- Ref: Features, destinations, market share, etc. of the main products
UNIC cranes
Mini-crawler cranes[Features]

Wide range of models such as various
boom lengths etc. which correspond to
customer needs.

[Features]Show the power in narrow ground,rough ground and indoor worksites.

[Destinations]

Construction and civil engineering sites,
material handling, rental companies, etc.

[Destinations]

Narrow or rough ground, Indoor
worksites, rental companies, etc.

[Market share][Market share]

UNIC carriers[Features]

Wide range of models such as cartransporter type, heavy machinetransporter type, etc.

[Destinations]

Car dealer, transportation company,
road construction company, etc.

[Market share]
UNIC carriers

UNIC cranes

Mini-crawler cranes

11Results by Segments (Metals Segment)
Net sales (Unit: Million yen)

- Main factors of FY2023 results[Net sales] ¥84.7 billion [(-)¥26.7 billion](-)26.7 billion- Decreased due to the termination of the entrusted smelting contract with Onahama Smelting andRefining (end of March 2023), electrolytic copper production decreased by 21,924 tons from theprevious year to 48,262 tons and sales volume decreased.
Copper (-)¥21.1 billion (Volume (-)¥24.1 billion, Unit price +¥2.9 billion)Gold(-)¥4.9 billion (Volume (-)¥7.0 billion, Unit price +¥2.0 billion)(-)8.0 billion
111,424
84,712

FY202276,700

FY2023

FY2024(Forecast)

Operating profit (Unit: Million yen)

[Operating profit] ¥1.9 billion [+¥0.6 billion]- Increased by ¥0.6 billion due to marginal gains from the effects of metal price fluctuations (the tableshown below) and an improvement in the balance of entrusted smelting.
Profit/loss from metal price fluctuations in the metals segment+0.6 billion

1,276
500
FY2023

FY2024(Forecast)- Ref: Features, destinations, market share, etc.
of the main productsElectrolytic copper[Features]

It has been responsible for supplying electrolytic
copper since founding, and produce approx.
46,000 tons a year.

[Destinations] Electric wires, copper elongation products, home
appliances, communication equipment,
automobiles, etc.

[FY2023]VS FY2022
Difference

Operating profit¥1.94 billion¥0.66 billion

Include priceeffect¥1.31 billion¥0.13 billion

Copper[¥0.18 billion][¥0.1 billion]

Gold[¥1.03 billion][¥0.01 billion](-)1.9 billion
1,945

FY2022

FY2023

Termination of entrusted copper smelting agreementwith Onahama Smelting and Refining Co., Ltd. andclear outlook on fundamentally review entrusted
smelting business.

- Main factors of FY2024 forecasts[Net sales] ¥76.7 billion [(-)¥8.0 billion]

FY2023VS FY2022
Difference

JPY rate per US$

144.6 ¥/$

9.1 ¥/$LME copper price

8,362 $/ton(-)189 $/ton

FY2024(Forecast)

VS FY2023
Difference

JPY rate per US$

145.0 ¥/$

0.4 ¥/$LME copper price9,000 $/ton

638 $/ton- Forecast a decrease in net sales because we expect electrolytic copper production to decline by 1,661
tons YoY to 46,601 tons, resulting in a decrease in sales volume.
Copper (-)¥4.2 billion (Volume (-)¥8.5 billion, Unit price +¥4.2 billion)Gold(-)¥3.3 billion (Volume (-)¥3.0 billion, Unit price (-)¥0.2 billion)[Operating profit] ¥0.0 billion [(-)¥1.9 billion]- Forecasted to decrease due to the expected deterioration of the balance of entrusted smelting as a resultof worsening ore purchase conditions and the absence of price gains/losses from metal price fluctuation
effects that existed in the fiscal year ended March 2024.
12

Results by Segments (Electronics Segment)
Net sales (Unit: Million yen)

- Main factors of FY2023 results[Net sales] ¥6.7 billion[(-)¥0.1 billion]+0.9 billion(-)0.1 billion
7,700
6,926

6,766

FY2022

FY2023

FY2024(Forecast)

Operating profit (Unit: Million yen)+0.1 billion
400
212
FY2022

FY2023[Operating profit] ¥0.2 billion [(-)¥0.2 billion]- Decreased due to lower sales in crystal products and aluminum nitride ceramics.

- Main factors of FY2024 forecasts[Net sales] ¥7.7 billion [+¥0.9 billion](-)0.2 billion
500- High-purity metallic arsenic sales flat YoY despite the bottoming out of the market cycle for compound
semiconductors. Coil sales increased due to a recovery in automobile production.
- Sales of crystal products declined significantly due to the impact of inventory adjustments by customers,
sales of aluminum nitride ceramics declined significantly due to sluggish demand for components used insemiconductor production equipment.

- Forecast sales of high-purity metallic arsenic to increase due to market recovery, sales of crystal
products to increase as inventory adjustments by customers will ease in H2 and thereafter, andsales of aluminum nitride ceramics will increase due to a recovery in demand for semiconductor
production equipment components.

[Operating profit] ¥0.4 billion [+¥0.1 billion]
FY2024(Forecast)- Operating profit expected to increase due to the increase in sales.

- Ref: Features, destinations, market share, etc. of the main products
High-purity metallic arsenic

Aluminum nitride ceramics[Features]

We have been mass-producing the world's purest high-purity metalarsenide at 99.999995% (7N5). We also boast the global top share.

[Features]

The heat-dissipating materials, high thermal conductivity, insulation, heat
uniformity, corrosion resistance, was made by our proprietary technologies
such as sintering and processing.

[Destinations]PC, smartphones, infrared luminous parts, red LD and LEDs, etc.

[Destinations]

Semiconductor manufacturing equipment components, high-power
LD/LEDs, resin-based heat-dissipation sheets, etc.

[Full production] Awareness as an excellent heat-dissipating materials is spreading.

[Market share]

Capital investment has been implemented to increase production to meet
future demand growth.
High-purity metallic arsenic

13

Results by Segments (Chemicals Segment)
Net sales (Unit: Million yen)

8,454

FY2022- Main factors of FY2023 results[Net sales] ¥8.9 billion [+¥0.4 billion]+0.2 billion+0.4 billion- Copper oxide sales flat YoY due to lower demand for package substrates for PCs, smartphones, andservers, despite higher unit prices resulting from higher copper prices and price revisions.
- Cuprous oxide sales up due to higher copper prices and price revisions, in addition to strong demand forship bottom paints.

8,908

9,200

FY2023

FY2024(Forecast)[Operating profit] ¥0.6 billion [+¥0.07 billion]- Increased mainly due to higher sales of copper oxide.

Operating profit (Unit: Million yen)(-)0.0 billion+0.0 billion

532

608

- Main factors of FY2024 forecasts[Net sales] ¥9.2 billion [+¥0.2 billion]- Net sales are expected to increase due to the gradual recovery in demand for copper oxide and otherproducts.

600[Operating profit] ¥0.6 billion [Flat]
FY2022

FY2023

FY2024(Forecast)- Operating profit is expected to remain flat YoY due to the impact of higher raw material costs.

- Ref: Features, destinations, market share, etc. of the main products
Cuprous oxide
Cupric oxide[Features]

Antifoulant for ship-bottom paints toprevent barnacle build-up.

[Destinations]Ship-bottom paints manufacturer.

[Features]High precision plating raw materials
used for oxidation catalysts or printed
circuit boards such as PC, etc.

[Features]

Uses the sulfur roasting method to produce
sulfuric acid with very little impurity, andcan be used as a food additive.

[Destinations]

Packaged boards (for PC and server
processors), etc.

[Destinations]

Manufacturer such as chemicals, electronic
devices, steel, food processing, etc.

[Basic material]

Demand is always stable as an indispensable
basic material for each industry.

[Full production] Expected increased demand for package[Market share]
Cuprous oxide

Sulfuric acidboards due to the miniaturization and highperformance of electronic materials.
Plan to increase the production capacity of
our existing facilities.

14

State of Capital Investment, Depreciation and Amortization,
Research and Development Expenses (Consolidated)[State of Capital Investment (Consolidated)
Capital Investment

FY2021

FY2022(Unit: Million yen)
FY2024(Forecast)

FY2023

Machinery

2,669

2,125

4,430

3,600

Industrial

1,703

912

2,547

1,000

Rock Drill

247

708

1,025

900

UNIC

718

504

857

1,700

Materials

696

1,571

1,581

1,900

Other

1,413

489

2,001

3,000

Total

4,778

4,187

8,013

8,500

[State of Depreciation and Amortization (Consolidated)]
Depreciation and amortization

4,003

4,114

4,387

4,500

Increase due to the establishment of new
medical waste disposal facilities (Expansion ofincinerator, total approx. ¥2.8 billion fromFY2022 to FY2023) at Gunma Kankyo Recycle
Center Co., Ltd., etc.
Construction of the (crane) mounting factory in
Nagano Prefecture, etc. (Approx.¥0.4 billion)
Increase due to the establishment of aluminum
nitride ceramics production equipment (Total
approx. ¥1 billion in the FY2022) in theElectronics segment, etc.
Renewal of facilities at Oita Mining and others in
the Metals segment, etc.
Renewal of sulfuric acid manufacturing
equipment in the Chemicals segment, etc.
Acquisition of a rental building in Osaka in thereal estate business (approx.¥1.2 billion in the
FY2023, approx. ¥2.0 billion in the FY2024)[State of Research and Development Expenses (Consolidated)]
Research and development
expenses

1,336

1,508

1,314

1,400
15

References[State of Metal Products, Foreign Exchange Rate (Consolidated)]
FY2021

Overseas market
price of copper(Average)

FY2022

FY2024(Forecast)

FY2023¢/pound

439.6

387.9

379.3

408.2

$/ton

9,691

8,551

8,362

9,000

JPY rate per US$ (Average)

112.38135.47144.62145.00

Production and marketing of
Furukawa Metals & Resources Co., Ltd.

FY2021

FY2022

FY2024(Forecast)

FY2023Copper production (t)71,14970,18648,262

46,601

Copper sale volume (t)77,402

74,07053,50546,525<About copper production>- Production volume is expected to decrease due to terminated entrusted smelting
contract with Onahama Smelting and Refining Co., Ltd. on March 31, 2023.
It will be produced only by Hibi Kyodo Smelting Co., Ltd., which is another contractor.

[State of Employee (Consolidated)]
End of Mar. 2022
Number of consolidated
employee (Persons)

2,804

End of Mar. 2023
2,831

End of Mar. 2024
2,855

VS End of Mar. 2023
24
16

References[Consolidated Financial Results](Unit: Million yen)

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

161,857

142,925

165,638

157,566

165,539

163,026

172,544

161,799

149,829

167,695

174,116

165,215

159,702

199,097

214,190

188,255

187,700

Operating profit

2,303

1,597

2,821

2,154

3,363

6,886

8,925

7,988

6,545

7,820

8,915

8,693

5,592

7,734

9,031

8,524

8,700

Ordinary profit

993

111

1,231

1,268

2,763

6,150

6,603

6,227

7,202

8,105

8,235

8,135

6,773

8,996

9,348

10,3848,000(-)5,917

585

563(-)1,659

2,976

3,976

9,793

5,056

4,254

4,774

4,654

4,431

7,468

6,477

6,211

16,097

14,000Net sales

Profit attributable to owners of parent

FY2024(Forecast)

Segment Performance[Net sales](Unit: Million yen)
FY2008

Machinery

FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)

62,63944,31347,02553,19856,852

71,11175,99072,232

66,80373,45377,58082,691

68,63576,93881,65882,08587,700Industrial

15,836

12,783

10,655

12,94912,894

18,527

16,712

14,926

14,041

15,871

17,971

23,237

16,682

17,723

17,943

15,548

19,100Rock Drill

29,427

20,38623,88024,14323,305

26,84230,91030,076

26,97930,19930,372

27,66324,14930,91035,752

38,682

36,200UNIC

17,375

11,142

12,490

16,10520,651

25,741

28,36727,22925,782

27,381

29,23731,79127,80428,30527,961

27,85332,40080,17582,12892,203

77,91788,026

90,162

93,27085,64478,96889,98792,722

79,366

88,203

118,163

126,804

100,388

93,600

Metals

68,786

71,132

79,97968,114

77,94478,68481,51374,192

67,853

77,33480,067

67,14976,094

102,995

111,424

84,71276,700Electronics

5,568

5,969

7,147

4,615

4,987

5,381

5,743

5,477

5,816

6,307

6,527

5,506

5,741

7,271

6,926

6,766

7,700

Chemicals

5,820

5,025

5,076

5,187

5,093

6,096

6,013

5,973

5,298

6,344

6,127

6,710

6,367

7,896

8,454

8,908

9,200

Real Estate

2,386

2,043

1,577

1,233

1,058

1,013

2,535

3,045

3,074

3,338

2,999

2,386

2,107

2,115

2,056

1,873

2,100

Other

1,204

854

785

766

753

739

747

876

983

916

814

771

755

1,879

3,671

3,908

4,300

Paints (*1)

―

3,692

15,04014,874

15,078

―

―

―

―

―

―

―

―

―

―

―

―

Fuels (*2)

15,452

9,893

9,004

9,576

3,770

―

―

―

―

―

―

―

―

―

―

―

―

161,857

142,925

165,638

157,566

165,539

163,026

172,544

161,799

149,829

167,695

174,116

165,215

159,702

199,097

214,190

188,255

187,700

Materials

Total[Operating profit](Unit: Million yen)
FY2008

Machinery

FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024(Forecast)

1,733(-)3,022(-)566

1,970

2,923

5,333

6,551

5,882

3,580

5,083

6,567

7,343

3,968

4,679

6,093

5,696

7,400

Industrial

767

433

(-)29

708

778

1,851

1,711

1,037

104

1,005

2,088

3,208

2,113

1,396

1,515

389

1,900

Rock Drill

255(-)2,584(-)350

333

(-)67

341

1,225

2,217

897

1,782

1,689

142

(-)1,324

1,117

3,030

4,148

3,100

UNIC

710

(-)870(-)186

928

2,212

3,141

3,614

2,627

2,578

2,295

2,789

3,992

3,180

2,165

1,547

1,158

2,400

229

3,985

3,044

325

324

1,695

1,770

983

1,870

1,648

1,396

776

1,040

2,349

2,309

2,765

1,000

Metals

23

3,224

1,494

308

282

1,503

1,449

1,154

1,738

867

581

301

499

940

11,2761,945

0Electronics

4

657

1,279

(-)234(-)262(-)12352(-)368

17

330

407

(-)35

161

666

500

212

400

Chemicals

201

104

269

251

304

315

267

197

114

451

406

510

380

743

532

608

600

706

1,128

635

356

219

(-)43

776

1,276

1,265

1,339

1,163

735

736

743

835

470

600

(-)304(-)376

(-)92

(-)93

(-)63

(-)60

(-)130(-)72(-)126(-)196(-)147

(-)94

(-)82

17

(-)133(-)293(-)200

Paints (*1)

―

(-)19

(-)93

(-)329

65

―

―

―

―

―

―

―

―

―

―

―

―

Fuels (*2)

202

(-)29

(-)56

(-)13

(-)28

―

―

―

―

―

―

―

―

―

―

―

―

Adjustment(-)264

(-)69

(-)49

(-)60

(-)78

(-)39

(-)42

(-)80

(-)44

(-)55

(-)64

(-)68

(-)71

(-)54

(-)73

(-)114(-)100

Total

2,303

1,597

2,821

2,154

3,363

6,886

8,925

7,988

6,545

7,820

8,915

8,693

5,592

7,734

9,031

8,524

8,700

Materials

Real Estate
Other*1 Withdrew from the Paints business by transferring shares of Tohpe Corporation in March 2013.
*2 Withdrew from the Fiels business by transferring shares of Furukawa Commerce Co., Ltd. in October 2012.
Notice: By applying "Accounting standards for disclosure of segment information, etc." (FY2012), we replace and display the figure for FY2011.

LME copper price (US$/ton)

5,864

6,101

8,139

8,485

7,855

7,104

6,554

5,215

5,154

6,444

6,341

5,860

6,879

9,691

8,551

8,362

9,000

JPY rat per US$

100.54

92.85

85.71

79.07

83.10

100.24109.93120.13108.42110.85110.91108.74106.06112.38135.47144.62145.0017

Intentionally Blank

Initiatives to Enhance Our Corporate Values
Increase profit fromgrowth strategy

Achieving
ROE ofapprox. 8%

Improve capitalefficiency

 Achieve consolidated operating profit of approx.
¥13 billion- Sustainably expand the Machinery business to a new level- Improve profitability and Portfolio, identify low-profit business(products) by reviewing business (product) Portfolio Reduce strategic shareholdings- Ratio to consolidated net assets to less than 20%(End of March 2025)

 Shareholder returns

Streamline andoptimize equity capital

Enhance
Corporate Value
Creation Power

Swiftly achieve a
PBR of 1x or higher- Increasing annual dividends and paying interim dividends- Annual dividends of ¥50.00 per share or higher- Consolidated total return on equity 3% or higher- Share buybacks of around ¥1.5–2 billion (each fiscal year)
around ¥5 billion over three years

Diminishingcost ofcapitalAppropriately disclose
effective information
related to reduce
non-financial risks andemphasize active
dialogue with investors

 Pursue initiatives for sustainability
 Invest in non-financial capital(R&D, IP, human capital, DX) Pursue optimal capital structure with rating
strategy at the core

Reduce financial risks-

Level of financial soundness that will earn a credit ratingof A- or higher
Debt-to-equity ratio: 0.5x range
Interest-bearing debt/EBITDA ratio: 3x range

Further improving appropriate information disclosure and engaging in active dialogue with investors so we can obtain an adequate market evaluation.

19

Achieving ROE of Approx. 8% - Reduce Strategic Shareholdings Strategic shareholdings reduction timeline- Policies on reducing strategic shareholdings* (Medium-Term Business Plan 2025)
We closely examine each individual holding to determine its purpose and whether the
benefits and risks associated with holding it are commensurate with the cost of capital.
At the same time, we are working to reduce the amount of holdings by making
comprehensive and careful examinations, including qualitative and quantitative
judgments, and selling shares deemed no longer necessary.

Less than
20%[Establishment of Target for Reducing ratio of Strategic Shareholdings toconsolidated net assets]

Feb. 2024

May 2024

Set and announced the new reduction targets[Reducing the ratio to less than 20% by March 31, 2026]

Reduction target was revised one year ahead of schedule.
[Reduce the ratio to less than 20% by March 31, 2025]* Strategic shareholdings
Total amount of investment shares (in the Consolidated Balance Sheets) held for purposes other than pure investment (includes
unlisted shares, but excludes shares in nonconsolidated subsidiaries and affiliates) + Shares deemed to be held for such purposes

2017/3

2018/3

2019/32020/32021/32022/32023/32024/32025/3Mediumto longterm goal

- At the time of the announcement in February 2024, we expected the ratio of strategic shareholdings
to consolidated net assets to decline from 35.1% on March 31, 2023, to around 32% by March 31,
2024. Although some of the shares were sold, due to rising prices of listed shares, however, theratio rose to 40.8% on March 31, 2024.
- In fiscal 2024, we plan to sell strategic shareholdings worth approximately ¥15 billion*, which willbring the ratio down to less than 20% by March 31, 2025.
*Estimated amount calculated from the price of strategic shareholdings as of March 31, 2024.

- Plan to utilize funds generated by the reduction of strategic shareholdings[Increase the amount share buybacks]
In May 2024, increased the target amount of share repurchases over three years from around ¥3 billion to around ¥5 billion. (Increase from around ¥1.0
billion to ¥1.5-2 billion each fiscal year.)[Plans for growth investments such as M&A and environmental investments]
In addition to growth investments such as M&A, we plan to use the funds for environmental investments related to carbon neutrality and environmental preservation.
*Our roadmap toward carbon neutrality will be developed and announced by the end of FY2024 (one year ahead of schedule).
20

Achieving ROE of Approx. 8% - Shareholder Returns Expanding shareholder returns- Dividend- Dividend policy: In principle, we aim to pay annual dividends of ¥50.00 per share or higher with a consolidated total return on
capital of at least 3%.
- FY2023 Increased annual dividends to ¥55.00 from the recent forecast of ¥50.00.
- FY2024 Plans to increase the annual dividend to ¥60 per share (¥30 interim dividend and ¥30 year-end dividend).

- Share buybacks- In line with the reduction of strategic shareholdings, the target for acquisition in each fiscal year will be increased fromaround ¥1.0 billion to around ¥1.5-2 billion.
Total of around ¥3.0 billion in the three years ⇒ Increased to around ¥5.0 billion in the three years

Million yen

Yen

2,000
1,800

%

Consolidated total returnon equity

100
90

1,600

80

1,400

70

Share buyback

60

1,000

50

800

40

600

30

400

20

200

10

0

0

3% or higher

3.1
2.8

2.8

2.5

1,208

2.3

2.5

3.5
3.0

3.1

2.4

4.5
4.0

1,620

Annual dividend
per share

3.3
3.0

1,200

¥1.5-2billion

3.9

2.5

888

2.0
60

50

50

50

50

50

50

50

50

50

1.5

55

420

1.0

30

164
0

0

2014/3

2015/3

0

0

334
0.5

0

0.0
2016/32017/3

Annual dividend per share2018/3

2019/32020/32021/3

Consolidated total return on equity

2022/32023/3

Share byuback

2024/32025/3(Forecast)21

Earnings Plan (Comparison to FY2023 Results and FY2025 Image)- Rock Drill machinery segment achieved the goals of the Medium-Term Business Plan 2025 ahead of schedule due to strong performance in North America andthe impact of the yen's depreciation.
- Industrial machinery and UNIC machinery segments saw a decrease in profits in FY2023, and the gap with the Medium-Term Business Plan 2025 is widening.
Rock Drill
Bubble size: Operating Profit
20.0%Electronics

Chemicals

FY2023 results

Industrial
MachineryUNIC

FY2023 results

15.0%

Compound average growth rate

10.0%

FY2025 image

Metals

FY2023 results

FY2023 results

FY2025 image
FY2025 image

5.0%

FY2023 results

FY2025 image

0.0%

-1.0%

FY2025 image

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

-5.0%

FY2023 results-10.0%-15.0%FY2025 image

Operating margin-20.0%

CompoundOperatingaverage growth Operating profit(Million yen)marginrate
Industrial
Machinery
Rock Drill
UNIC

FY2023 results

2.5％

-2.3％

389

15,548FY2025 image

12.5％

10.7％

3,000

24,000

FY2023 results

10.7％

17.0％

4,148

38,682

FY2025 image

9.5％

3.7％

3,700

39,000

FY2023 results

4.2％

0.1％

1,158

27,853

FY2025 image

10.7％

10.4％

4,000

37,500[Exchange assumptions] FY2023 results: 144.6 ¥/$, FY2025 image : 135.0 ¥/$CompoundOperatingaverage growth Operating profit(Million yen)marginrate

Sales(Million yen)

MetalsElectronics
Chemicals

Sales(Million yen)

FY2023 results

2.3％

3.6％

1,945

84,712

FY2025 image

0.8％-16.7％

500

63,500

FY2023 results

3.1％

5.6％

212

6,766

FY2025 image

7.8％

9.3％

700

9,000

FY2023 results

6.8％

11.8％

608

8,908

FY2025 image

7.4％

4.2％

700

9,500

22

Achieving ROE of Approx. 8% - Growth Strategy (Industrial Machinery) Business (product) portfolio presented in the Medium-Term Business Plan 2025
FY2021 vs FY2025 image (Medium-Term Business Plan 2025): Growth PotentialＹ

Pump
equipment

Material machinery

Belt conveyor

Pumps- Close-up of Major Measures[Material machinery]- Aiming to expand market share and increase stock with the GEOPUS series of strategic
machines to meet the demand for renewal of aging equipment.
West Japan -> Expand market share from 10％ to 15％
Strengthening our sales structure in the Chugoku and Shikoku regions (Establish base in
FY2023, increasing personnel).
Already selected targets mainly for replacing other companies' machines.
East Japan -> Maintain a 20％ market share
Already selected targets for further replacement of our own and other companies' machinesand new installations.

Steelstructures

Strategic machines (GEOPUS series)
X: Profitability

Business (product) portfolio compared to FY2023 results

GEOPUS C3

FY2023 vs FY2025 image (Medium-Term Business Plan 2025)
Material machinery: Growth Potential

Ｙ

New type of screen

X: Profitability
Basic strategies and key priorities of the Medium-Term Business Plan 2025, see “Medium-Term Business Plan 2025”
Page16 to 17.

HPGR

Crushers
Identify issues at crushers that affectthe productivity of our customers
and propose the introduction ofstrategic machines.
Lead to a stock business

Screens
As a stepping stone to theintroduction of crushers, building
relationships with new customers byintroducing a new type of screen.

- Aim to build a new business model utilizing IoT.
Monitoring machine condition, promoting preventive maintenance, and supporting
productivity improvement.
- In light of the additional cost incurred in FY2023 due to construction delays at material
machinery, we will implement strict risk management through a segment-wide matrixorganization.

23

Achieving ROE of Approx. 8% - Growth Strategy (Industrial Machinery) Business (product) portfolio presented in the Medium-Term Business Plan 2025
FY2021 vs FY2025 image (Medium-Term Business Plan 2025): Growth PotentialＹ

Pump
equipment

Belt conveyor

Material machinery

Pumps

Steel
structures- Close-up of Major Measures[Belt conveyor]
Promote the belt conveyor as a problem-solving sediment conveying method.
Contribute to the 2024 problem and CO2 reduction.
- The number of specific inquiries are increasing.
Project related to the construction and renewal of dams
Project related to the river flood control
Others

The total estimated value of the projects is approximately ¥10 billion, based on theinquiries that are currently emerging.
-> Aim to win orders for these projects in FY2024 and FY2025.
X: Profitability

Business (product) portfolio compared to FY2023 results
FY2023 vs FY2025 image (Medium-Term Business Plan 2025): Growth Potential

Ｙ

Belt conveyor

Dam steep inclination demonstration machine
Enclosed hanging conveyor (SICON®)

Examples of river flood control(Regulating reservoir construction)
Enclosed hanging conveyor (SICON®)

X: Profitability
Basic strategies and key priorities of the Medium-Term Business Plan 2025, see “Medium-Term Business Plan 2025”
Page16 to 17.

24Achieving ROE of Approx. 8% - Growth Strategy (Rock Drill Machinery) Business (product) portfolio presented in the Medium-Term Business Plan 2025
FY2021 vs FY2025 image (Medium-Term Business Plan 2025): Growth Potential

Ｙ

Blast hole drills

Hydraulicbreakers

Tunnel drill
jumbosAuxiliaryparts

Hydrauliccrushers

Maintenanceservices

X: Profitability[Exchange assumptions]
FY2021 results: 112.4 ¥/$, FY2023 results: 144.6 ¥/$, FY2025 image : 135.0 ¥/$Business (product) portfolio compared to FY2023 results
FY2023 vs FY2025 image (Medium-TermBusiness Plan 2025)[Blast hole drills*] *General term for hydraulic/pneumatic crawler drills, down-the-hole drills, and attachment drills.
Japan- Launched a machine with a semi-automatic drilling function in 2023 to solve the shortage of
operators.
-> Contribute to solving our clients’ problems of “difficulty in securing skilled operators”.
Overseas
North America -> Concentrated production and sales
Established western base in FY2023. Reduce transportation time and costs, and strengthen
price competitiveness.
Enhance sales to blasting contractor.
-> In FY2024, decrease as a reaction to the large increase in the previous year. Predict a
recovery in demand in 2025.
Southeast Asia -> Create a quarry market(Working to foster a market for hydraulic crawler drills)
Introduced the attachment drills, which is the first machine to guide from pneumatic to hydraulicfor the creation of a quarry market directly linked to infrastructure investment.
Won orders in five countries in FY2023, mainly in Indonesia.
-> Further strengthen demonstration activities (At least 30 locations in 4 countries in FY2023)
and the development of new dealers, and in the future, we aim to create a quarry market inSoutheast Asia as the third market following North America and Europe.

Blast hole drills: Growth PotentialＹ- Close-up of Major Measures

X: Profitability

Basic strategies and key priorities of the Medium-Term Business Plan 2025, see “Medium-Term Business Plan 2025”
Page18 to 19.
Click here for Business Briefing of Rock Drill Segment https://www.furukawakk.co.jp/ir/library/pdf/Pre_157M.pdf

Hydraulic crawler drill
with a semi-automatic drilling function

The western base in North America

Attachment drills

25Achieving ROE of Approx. 8% - Growth Strategy (Rock Drill Machinery) Business (product) portfolio presented in the Medium-Term Business Plan 2025
FY2021 vs FY2025 image (Medium-Term Business Plan 2025): Growth Potential

Ｙ

Blast hole drills

Hydraulicbreakers

Tunnel drill
jumbosAuxiliaryparts

Hydrauliccrushers- Close-up of Major Measures[Hydraulic breakers]
Japan- Concentrate on developing super-large hydraulic breakers forthe demolition market in the Tokyo metropolitan area.
-> Strengthen our presence in the demolition market by increasing our market shareof super-large breakers in the Tokyo metropolitan area.

Hydraulic breakers

Overseas- Expand sales of super-large breakers in North America.
- Expand sales of hydraulic breakers in the major European markets (France, the UK, Italy, Germany),
and developing demand in Eastern Europe with a view to the reconstruction of Ukraine.

[Auxiliary parts]
Maintenanceservices- Promote sales of auxiliary parts by strengthening free-of-charge inspections and purpose-specificmaintenance proposals in line with the status of machines in operation and customer requests.
- Established a western base in North America in FY2023.
-> Strengthen our customer support business through a fixed price maintenance program for hydraulicbreakers and other products, and by strengthening our immediate delivery system.

X: Profitability[Exchange assumptions]
FY2021 results: 112.4 ¥/$, FY2023 results: 144.6 ¥/$, FY2025 image : 135.0 ¥/$Business (product) portfolio compared to FY2023 results
FY2023 vs FY2025 image (Medium-TermBusiness Plan 2025)
Ｙ: Growth Potential

Hydraulicbreakers

Maintenanceservices

Auxiliaryparts[Maintenance services]- Established an operating company in 2023 to directly provide maintenance services for blast hole drills
and products in the North Kanto region.
-> Serve as a place to develop and strengthen our mechanic personnel.

[Customer support]- Support customers' productivity improvement (customer success) through the operation support
system.
Based on the data obtained from the operation support system, launch two paid services in FY2023.
1. Report Delivery: Analyzes operation data and delivers reports.
2. Drill Operation: Analyzes drilling operation data and provides guidance on improving drilling operation
efficiency-> Strengthen the development and sale of these intangible services that support the success ofcustomers' businesses and support our customers throughout their life cycle.

X: Profitability

Basic strategies and key priorities of the Medium-Term Business Plan 2025, see “Medium-Term Business Plan 2025”
Page18 to 19.
Click here for Business Briefing of Rock Drill Segment https://www.furukawakk.co.jp/ir/library/pdf/Pre_157M.pdf

26

Achieving ROE of Approx. 8% - Growth Strategy (UNIC Machinery) Business (product) portfolio presented in the Medium-Term Business Plan 2025
FY2021 vs FY2025 image (Medium-Term Business Plan 2025)

30.0%
25.0%

Ｙ

: Growth Potential

20.0%

UNIC
carriers

Mini-crawler cranes(Overseas)

Mini-crawler cranes(Japan)

15.0%
10.0%

UNIC cranes(Japan)5.0%- Close-up of Major Measures[UNIC cranes]Japan- Expand sales of superior products such as joystick-type radio-controlled cranes.
- Reflect cost increases in selling prices.
- Improve our mounting system (Increased production at Sakura Works, Construction of the mounting
factory in Nagano Prefecture).
- Shift to electric truck vehicles (Reinforcing development system for the future).

Registered number of standard trucks

0.0%

-5.0%
-10.0%-15.0%
10.0%

100,000

UNIC cranes(Overseas)

91,85985,76990,00077,29380,00020.0%

30.0% X: Profitability
40.0%

50.0%

60.0%

64,26870,00067,62170,000

FY2023

FY202475,00075,000

FY2025

FY202660,00050,000Business (product) portfolio compared to FY2023 results

40,000FY201930.0%

FY2023 vs FY2025 image (Medium-Term Business Plan 2025)

25.0%: Growth Potential

UNIC cranes(Japan)

10.0%
5.0%

-5.0%

-15.0%
10.0%

UNIC cranes(Overseas)
20.0%

30.0% X: Profitability
40.0%

FY2022Pre COVID-19
2 to 3 months

After COVID-19 (Present time)
Prolonged to around 1 year
Expected to take the entire year of 2024 to be resolved

Overseas- Expand sales of large and super-large UNIC cranes in the Southeast Asian and Middle Easternmarkets.
- Build a network of dealers (Upgrading dealers in existing regions, establishing dealers in future
markets)- Expand the functions of models sold, develop new products for the future.

0.0%-10.0%FY2021

Delivery time for the front-end process of crane installation has lengthened considerably

20.0%
Ｙ
15.0%

FY2020

50.0%

60.0%

Basic strategies and key priorities of the Medium-Term Business Plan 2025, see “Medium-Term Business Plan 2025”
Page20 to 21.

27

Achieving ROE of Approx. 8% - Growth Strategy (UNIC Machinery) Business (product) portfolio presented in the Medium-Term Business Plan 2025
FY2021 vs FY2025 image (Medium-Term Business Plan 2025)

30.0%
25.0%

Ｙ

: Growth Potential

20.0%

UNIC
carriers

Mini-crawler cranes(Overseas)

Mini-crawler cranes(Japan)

15.0%
10.0%

UNIC cranes(Japan)

5.0%
0.0%

-5.0%

UNIC cranes(Overseas)-10.0%-15.0%
10.0%

20.0%

30.0% X: Profitability
40.0%

50.0%

- Close-up of Major Measures[Mini-crawler cranes]Japan- Cultivate the market and increasing sales with new electric mini-crawler cranes for overseas markets(Scheduled to be launched in FY2024).
- Start nationwide sales of cranes for residential construction (In FY2024).
Overseas- Expanding sales of the new electric mini-crawler crane (UM325C) launched in Europe.
- Increasing sales of large mini-crawler cranes in North America.
- Cultivating demand in Southeast Asia by preparing demo equipment at dealers and strengthening
promotions.

60.0%

Business (product) portfolio compared to FY2023 results
FY2023 vs FY2025 image (Medium-Term Business Plan 2025)

30.0%
25.0%
20.0%

: Growth Potential

Ｙ

Mini-crawler cranes(Overseas)

UNIC
carriers

15.0%

Mini-crawler cranes(Japan)New electric mini-crawler crane(UM325C)

Cranes forresidential construction[UNIC carriers]- Introduce a new flat-type model of UNIC carrier which help to increase sales share (Scheduled to belaunched in FY2024).

10.0%
5.0%
0.0%

-5.0%
-10.0%-15.0%
10.0%

Flat-type model of UNIC carrier

20.0%

30.0% X: Profitability
40.0%

50.0%

60.0%

Basic strategies and key priorities of the Medium-Term Business Plan 2025, see “Medium-Term Business
Plan 2025” Page20 to 21.

28Cautionary Notes Regarding Forward-Looking Statements
This document contains forward-looking statements including forecasts, expectations, assumptions, plans, acknowledgements and evaluations
regarding the Company and the Group. These statements are based on the information the Company has obtained as of the publication dateand on assumptions the Company believes are reasonable. The forward-looking statements in this document and their implications may differ
materially from actual results because the assumptions of the Company and the conclusions that it has reached are subjective in nature and thebusiness environment and business activities are subject to latent risks and uncertainties. Latent risks and uncertainties that may affect theCompany’s forward-looking statements are explained in, but not limited to, the Company’s Annual Securities Reports and the “Business Risks”
section of the Company’s corporate website.
Therefore, the Company does not promise or warrant the attainment of performance indicators, forecasts, or future operating results describedherein. Furthermore, the Company does not undertake any obligation to update any statements in this document after its publication,
irrespective of new information, future events or otherwise.
You are cautioned to use this document at your own discretion. The Company is not obliged to warrant the reliance, accuracy, integrity,
completeness, or timeliness of the information herein, or to bear responsibility for any damages arising as a result of using this document.
This document has been prepared solely for information purposes, for better understanding of the Company’s business policies andmanagement operations. This document is not a solicitation of investment in securities. Accordingly, you are cautioned not to place undue
reliance on this document when you make an investment decision. The Company does not bear any responsibility for your decision regarding
your investments.

Thank you for your understanding and continued support.

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

Medium-Term Business Plan 2025
Complete Realization of Vision for 2025

Briefing for the Medium-Term Business Plan
May 30, 2023
*May 13, 2024
Page 10: Revised the amount of share buybacks
Revised target for reduction of strategic
shareholdings*February 9, 2024
Page 10: Added target for reduction of strategic shareholdings
TSE Prime Market
Securities code: 5715

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

Index

Review of Medium-Term Business Policy 2022
(1) Review of Performance Indicators(2) Performance Highlight

Theme & Positioning of Medium-Term Business Plan
(4) Promote Cost of Capital and Stock Price
Conscious Management(1) Management Philosophy of the Furukawa Company Group(2) The Value Creation Process of the Furukawa Company Group(5) Growth Strategy(3) Complete Realization of Vision for 2025

Earning Plan / Capital Policy(1) Summary of Earnings plan / Capital policy(2) Review of Business Portfolio(3) Earnings Plan

Strategies and Key Priorities Issues by Segment(1) Machinery Industrial Machinery / Rock Drill Machinery / UNIC Machinery(2) Materials Electronics / Chemicals / Metals(3) Real estate business

Sustainability / Allocation of Management Resources(1) Sustainability Initiatives(2) Allocation of Management Resources, etc.
2

1

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(1) Review of Performance Indicators-

Established a robust earnings foundation with the Machinery business as the core business
Performance recovered to pre-COVID-19 levels despite previous deterioration due to the pandemic【Billion Yen】
10.0

Medium-Term Management Plan 2019

Medium-Term Business Policy 2022

Failed to reach FY2019 ROE target (6–7%), ending theperiod at 5.8%, but achieved FY2019 operating profit
target (¥8.5 billion) in two consecutive years: FY2018(¥8.9 billion) and FY2019 (¥8.6 billion)

Numerical targets for performance indicators have notbeen announced due to the COVID-19 pandemics. In
FY2022, performance recovered to its pre-COVID-19
level (operating profit: ¥9.0 billion,ROE6.2%)

10.0%*We recorded extraordinary profit in FY2020.

8.9

9.0

8.6

9.5%
9.0%
8.5%

7.8

8.0

9.0

8.9%*

7.7
8.0%

7.0

7.5%

6.5

6.9%
7.0%

6.0

5.9%

5.9%

5.0

5.8%

6.2%

5.5

5.7%

6.5%
6.0%
5.5%

4.0

FY2016FY2017Fy2018FY2019FY2020

FY2021

FY2022

Operating profit

6.5

7.8

8.9

8.6

5.5

7.7

9.0

ROE

5.9%

5.9%

5.7%

5.8%

8.9%

6.9%

6.2%

General note: In this document, we describe “FY202x” as the year starting April 1, 202x, and ending March 31 in the following year.

5.0%

3

1

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(2) Performance Highlight- Rock Drill Machinery segment strengthened and rebuilt its overseas marketing capabilities and achieved a V-shaped recovery in earnings as a result- In the Metals segment, terminated our entrusted copper smelting contract with Onahama Smelting and Refining Co., Ltd. Proceed with the radical
reform of the entrusted smelting business
Operating profit (Unit: Million yen)Compared to results for FY2016, FY2019, FY2022

FY2016FY2016

ROA(Operating Profit), Total Asset Turnover, Operating margin, Operating profit

FY2022

Metals

FY2022

1,738

301

1,276

Industrial

104

3,208

1,515

Electronics

17

(-)35

500

Rock Drill

897

142

3,030

Chemicals

114

510

532

2,578

3,992

1,547

Consolidated

6,545

8,693

9,031

UNIC
15.0%

FY2019FY2019UNIC

Bubble size: Operating profit

Industrial
machinery

Consolidated
10.0%

13.0%

FY2019FY2019Operating margin

11.0%

Operating margin

FY2016

Chemicals

9.0%

FY2019

Electronics

Rock
Drill

FY2022

FY20227.0%

FY2022

FY20225.0%

FY2022FY20160.0%

FY20225.0%

FY2019

0.4

0.6

0.8

1.0

1.2

Total asset turnover

Metals
FY20163.0%

FY2016FY2016FY2022FY20191.0%

FY2016

0.0
-1.0%

0.3

0.3

0.5

0.7

FY2019FY2019

2016

0.9

1.1

Total asset turnover

1.3
2.5

2.7
1.5

2.9
1.7

3.1
1.9

4

2

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(1) Management Philosophy of the Furukawa Company Group

Vision for 2025

FURUKAWA Power & Passion 150
Management
Philosophy

The Furukawa Company Group will remain
indispensable to society by always embracing a
spirit of challenge, advancing the technologies
that have underpinned the foundation of societythat originated in mining development.

Long term business plan and strategies
Action Plan Business strategy
 Financial strategy
 Business portfolio strategy

 Materiality (Key Issues) on
sustainability initiatives

Vision for 2025

FURUKAWAPower & Passion 150

Medium term business plan and strategies

PDCA

Action Plan Management Strategy Meeting(Rolling forward the medium term plan) R&D / Commercialization Committee

Ac t i o n g u i d e l i n e sInnovation Creativity Harmony

 Sustainability Promotion Meeting

Budgeting / planning for each fiscal year

PDCA

Action Plan

Management Strategy
MeetingManagement Committee

R&D / Commercialization

 Sustainability Promotion Meeting

Committee

52Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(2) The value creation process of the Furukawa Company GroupThe Furukawa Company Group will remain indispensable to society by always embracing a spirit of challenge,
advancing the technologies that have underpinned the foundation of society that originated in mining development.

Management
Philosophy

Mining technologies
Strategy
Vision for 2025
Medium-TermBusiness Plan

Smelting technologies
Products /Technologies /Services

Drilling
technologies

Hydraulic control
technologies

Slurry transportation
technologies

UNIC MachineryRock Drill Machinery

ROE
ROA

Transport / Mineral processing
technologies

Exploitation technologies

Grinding
technologies

Exhaust gas
treatment
technologies

Industrial Machinery

Flash smelting
technologies

Sulfuric acidproduction
technologies

Electric
technologies

MetalsChemicalsElectronics
Category leadershipand uniqueness

Manufacture and sale ofhydraulic breakers, hydrauliccrushers, hydraulic crawler
drills, tunnel construction andmining machinery, etc.

Manufacture and sale of pumps,

Manufacture and sale of UNIC
crushers, and other material machinery,cranes, mini-crawler cranes,
bridges, belt conveyors and heat- andocean cranes, UNIC carriers, etc. abrasion-resistant castings; various

Sale of electrolytic
copper, electrolytic gold,
electrolytic silver, sulfuric
acid, etc. (producedby smelting on
consignment)

Manufacture and sale ofhigh-purity metallic
arsenide, crystal products,
core coils, aluminum
nitride, opticalcomponents, etc.

construction contracts

MachineryBusiness

CSR
ESG

Manufacture and sale ofsulfuric acid, polyferricsulfate aqueous solution,
sulfate band, cuprous
oxide, cupric oxide, etc.

Materials
Business“Corporate Value” Creation through Business Activities“ M a r k e t i n g - B a s e d

M a n a g e m e n t ”

Social Value Creation
Business
Portfolio
Management

That

Incorporates

CSV*

Perspectives-

Establish social
infrastructure
Realize a prosperous societythat is safe andenvironmentally friendly

Enterprise
Risk
Management

Social Issues /Needs*CSV… For the Furukawa Company Group, creating shared value (CSV) means creating “corporate value” by providing infrastructure, products, technologies, services, and the like that help resolve social issues.
It also means fostering the creation of “social value” by improving social infrastructure and realizing a safe, environmentally friendly, and prosperous society.

62(3) Complete Realization of Vision for 2025
Vision for 2025(Ideal image for 150th anniversary of our founding)*

Become a corporate group that leverages its
reputation for category leadership and uniqueness todeliver growth

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)- Leverage our unrivalled, distinctive technological capabilities to deliver growth in areas where we candemonstrate our Group strengths- Differentiate ourselves by practicing “marketing-based management” that incorporates CSV perspectives- Maintain and enhance our earnings base
- Increase our value as a company needed by society*Established November, 2015

Creation of “corporate value”
and “social value”

Targeting consolidated
annual operating profit
regularly in excess of¥15 billion *Phase 3Phase 2Phase

FY2017-2019

Complete Realization of
Vision for 2025

FY2020-2022

Expedite growth and further
improve profitability

Build foundations for renewed
growth

FY 2023-2025

Medium-Term Business Plan 2025

Medium-Term Business Policy 2022
Assumption

Medium-Term Business Plan 2019

FY2022 results

FY2019 results

Operating Profit

Operating Profit ¥8.6 billion
ROE
5.8%

ROE

¥9.0 billion
6.2%* As disclosed in “Consolidated Financial Results for the
Fiscal Year Ended March 31, 2023”

PERFORMANCE
INDICATORs

2019

Operating profit

Approx. ¥13 billion

ROE

Approx. 8%* Performance indicators in Medium-Term Business Plan 2025
do not account for new alliances and M&As

2022

2025
7

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

2(4) Promote Cost of Capital and Stock Price Conscious Management-

Swiftly achieve a PBR of 1x or higher by delivering sustainable growth and medium to long term enhancement of corporate value
Take concrete measures to achieve ROE of approximately 8% and diminish the cost of capital
Appropriately disclose information and pursuing active dialogue with investors

Specific initiatives to expand and to strengthen our corporate value creation power:
Achieving ROE of approx. 8%

Transition of ROE
15.9- Achieve consolidated operating profit of approx. ¥13 billion in FY2025- Improve capital efficiency- Reduce strategic shareholdings- Streamline and optimize equity capital- Shareholder return

7.6
6.2

Diminishing cost of capital

8.9
7.5
5.9

Approx.8％
5.9 5.7

6.9
5.8

6.2

- Appropriately disclose effective information related to reduce nonfinancial risks and emphasize active dialogue with investors- Pursue initiatives for sustainability- Invest in non-financial capital(R&D, intellectual property, human capital, DX)- Reduce financial risks- Pursue optimal capital structure with rating strategy at the core

-3.6
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2025

8

2

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(5) Growth Strategy

 Concentrate management resources on Machinery business to increase returns
Practice “marketing-based management” that incorporates CSV perspectives

Basic policies- Establish social infrastructure

Machinery business,positioned as thecore business

Develop infrastructure that helps address social issues in such areas as preventing andmitigating disasters, which are increasing due to climate change- Realizing a prosperous society that is safe and environmentally friendly

Provide products, technologies, services, and other solutions to ensure safe and secure
workplaces for workers and help resolve labor shortages.

Industrial Machinery segment

Rock Drill Machinery segment

UNIC Machinery segment

Increase sales of pumps, material
machinery, belt conveyors, equipment forlarge-scale domestic infrastructure projects

Build an “FRD model” to achievecustomer success throughout
the product life cycle

Expand earnings throughoverseas sales while securing
stable earnings in Japan

Fostering thecreation of“social value”

Devote 70% of cumulative capital investment to the Machinery business, with the aim of thatbusiness accounting for 50% or more of consolidated net sales and 80% or more of
consolidated operating profit
Step up efforts related alliances and M&As to achieve
discontinuous future growth93(1) Summary of Earnings plan / Capital policy

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)*Added/Revised blue underlines- Make individual investment decisions with attention to profitability, taking into account risks associated with the investment and cost of capital,
while stepping up efforts to improve efficiency and profitability- Seeking to establish a robust financial base enabling us to raise the necessary funds regardless of financial conditions- Expansion of shareholder returns (consider increasing annual dividends and paying interim dividends, share buybacks)

Financial strategy
Shareholder return

Operating Profit Approx. ¥13 billion
ROE Approx. 8%-

Pursue optimal capital structure with rating strategy at its core
Raise ratings to A- or higher, from BBB+

Debt-to-equity ratio: 0.5x range
Interest-bearing debt/EBITDA ratio: 3x range-

Annual dividends of ¥50.00 per share or higher, consider increasing annual dividends
and paying interim dividends
Share buybacks (approx. ¥1 billion -> approx.¥1.5 to 2 billion each fiscal year)
Increase from approx. ¥3 billion to approx. ¥5 billion in total for three years

Consolidated total return on equity of 3% or higher

Conduct annual reviews of appropriateness of continued ownership based oncomprehensive judgment of cost of capital and other factors
Continue disclose the ratio of strategic shareholdings to consolidated net assets

Strategic shareholdings ratio 35.1% (FY2022)
Reduction target: Less than 20％ at end of FY2024--

Reducing strategic
shareholdings-

Transition ofoperating Profit /ROE
BillionBy deploying a business portfolio management system that utilizes cost of capital, toachieve sustainable growth and increase corporate value over the medium to long terms-

Earnings plan

Operating Profit

Transition of Debt-to-equity ratio /Interest-bearing debt/EBITDA ratio

ROE

14

13.0

20.0 %

15.9

12

15.0
10

8.9

8.9
7.9

8

6.2

6

6.8
7.6

7.8

3.3

8.9

7.7

10.0

5.5

7.5

5.9

5.7

5.8

8
6.9

6.2

Times

5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

15.7

15.0

12.6

12.0

0.0
-3.6

FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-5.0
2025

7.9
6.8

5.0
6.0

2.1

Debt-to-equity ratio

18.0

9.0

2
0

Interest-bearing debt/EBITDA ratio

Magnification

6.5
5.9

4

9

8.6

- Underlying assumption of
exchange rate: ¥135/$

3.0
0.0

1.9

1.6

1.4

6.8

7.6

7.4
6.6

5.9

5.7

5.6

4.8
3.0

1.2

1.1

0.9

0.9

0.9

0.9 0.8

0.7

0.6

FY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 列10.5
列2 202510

3

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(2) Review of Business Portfolio
Basic strategy
for investment-

Diversify visualize and identify our business portfolio, and make rational businessdecisions that are not overly influenced by history-

Plot three factors—”corporate value creation power* ” , “compound annual growth rate (CAGR)”, “Corporate value created/year* ” foreach segment on a bubble chart to accurately visualize our business portfolio-

Conduct a four-quadrant analysis based on growth potential and corporate value creation power* “Corporate value creation power” and “Corporate value created/year” are terms coined by Furukawa Co., Ltd.

Status of review
Conducted a fundamental review of our entrusted
Materials copper smelting business[Business Portfolio Analysis]
Bubble size: Corporate value created/year* (= Corporate value creation power x Invested capital)

Metal segment

0%

Rock Drill segment- Liquidating our overseas subsidiaries in Panama and China

Real Estate business

Solidifying earnings foundation- Use site of former Furukawa Osaka Building to promote lease business

Growth potential

Strengthen and rebuild our overseas marketing

Machinery capabilities

Compound average growth rate(CAGR)- Terminated our entrusted copper smelting contract with Onahama
Smelting and Refining Co., Ltd. on March 31, 2023
- Furukawa Metals & Resources Co., Ltd., transferred all its shares in
Onahama Smelting and Refining to Mitsubishi Materials Corporation

Selective investments

Priority investments

Next-generation
businesses

Growth businesses
X%

Rebuilding
Business
restructuring

Withdraw/
sell-off

Stable profit

Core businesses

Corporate value creation power*
Corporate value creation power* (=ROIC - WACC)

11

3

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(3) Earnings Plan-

Make individual investment decisions with attention to profitability, taking into account risks associated with the investment andcost of capital
Stepping up efforts to improve efficiency and profitability
Optimize overall allocation of management resources to achieve sustainable growth and increase corporate value over the medium
to long terms by deploying a business portfolio management system that utilizes cost of capital
Medium-TermBusiness Plan 2019

Medium-TermBusiness Policy 2022

【Billion】14.0

Medium-TermBusiness Plan 2025

8％

5.9%

5.8%

6.2%

7.0%

FY2016

6.0%

5.9%

5.0%

13.0

6.0

8.6

4.0

Results

8.0

4.0%

FY20195.8%
FY2022

6.2%

3.0%

9.0

6.5

Efficiency

Leverage

Total asset
turnoverFinancialleverage

2.84%

0.74 times

2.80 times

2.68%

0.78 times

2.76 times

2.90%

0.93 times

2.31 times

Improve

Improve

2.0%
1.0%

0.0

FY2016 results

FY2019 results

FY2022 results

6.5 Billion
5.9%

8.6 Billion
5.8%

9.0 Billion
6.2%* As disclosed in “Consolidated
Financial Results for the
Fiscal Year Ended March 31, 2023”

FY2025assumption
Approx.13.0 Billion
Approx. 8%* Performance indicators in MediumTerm Business Plan 2025 do notaccount for new alliances and M&As

0.0%

Assumption

2.0

Operating Profit
ROE

Profitability
Return on sales

8.0%

12.0

10.0

9.0%

ROE

FY2025

Approx.

8%

down*Compared to FY2016*Underlying assumption
FY2022 Results: Exchange rate (¥/USD) 135.5
FY2025 assumption: Exchange rate (¥/USD) 135.0

123Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(3) Earnings Plan-

Consolidated performance (FY2025 image):
Although the compound average growth rate for net sales is expected to decline due to falling sales in the Metals segment,
increased sales and profit in the Machinery business is projected to drive up the operating margin
Bubble size: Operating Profit
Operatingmargin18.0%

Consolidated
FY2022 Results

Machinery
13.0%

compound average growth rate

8.0%

FY2022 results

FY2025 image

4.2%
6.9%
7.5%
10.6%
1.8%
2.3%
40.6%
30.0%

FY2022 results
FY2025 image

Machinerybusiness

FY2022 results

Materials
business

FU2022 results

Real estatebusiness

FY2022 results

Compound average Operating Profit
growth rate
(million yen)

FY2025 image
FY2025 image

FY2025 image

9.0%
-3.6%
-0.4%
7.6%
16.9%
-13.1%
-4.8%
-0.0%

9,031
13,000
6,093
10,700
2,309
1,900
835
600

Sales
(million yen)

214,190
189,000
81,658100,500
126,804
82,000
2,056
2,000

3.0%

FY2025 image
0.0%
-2.0%

5.0%

FY2022
results

10.0%

15.0%

25.0%
20.0%

30.0%

25.0%

35.0%

【2025イメージ】不動産事業,
Operating margin
40.0%
30.0%
35.0%
40.0%
30.0%,
0.0%, 600

Real estatebusiness-7.0%

FY2025 image
FY2022 results
Consolidated-12.0%FY2025 image-17.0%

Materials

13

3

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(3) Earnings Plan-

In the core Machinery business, we expect the Industrial Machinery and UNIC Machinery segments to post increases in growth rate, operating
profit, and operating margin
In the Rock Drill Machinery segment, we will maintain high profitability and post increases in operating profit and operating margin despitea declining growth rate
In the Materials business, we expect the Electronics and Chemicals segments to post increases in operating profit and operating margin
Bubble size: Operating Profit
20.0%

UNIC

Electronics

FY2022 results

Industrial
Machinery

15.0%

compound average growth rate

Chemicals

FY2025 image

FY2022 results

FY2022 results

10.0%

FY2022 results

FY2025 image

5.0%

FY2025 image
FY2025 image

0.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

FY2025 image
9.0%

11.0%

13.0%

15.0%

-5.0%

Rock Drill
FY2022 results-10.0%

Metals

FY2022 results-15.0%FY2025 image

Operating margin-20.0%

compoundOperatingOperating Profit
Sales
average growthmargin(million yen)(million yen)ratecompoundOperatingOperating Profit
Sales
average growthmargin(million yen)(million yen)rate
Industrial
Machinery

Rock Drill
UNIC

FY2022 results
FY2025 image
FY2022 results
FY2025 image
FU2022 results
FY2025 image

8.4％

-8.3％

1,515

17,943

12.5％

10.7％

3,000

24,000

8.5％

8.9％

3,030

35,752

9.5％

3.7％

3,700

39,000

5.5％

-4.2％

1,547

27,961

10.7％

10.4％

4,000

37,500

MetalsElectronics
Chemicals

FY2022 results
FY2025 image
FY2022 results
FY2025 image
FU2022 results
FY2025 image

1.1％

18.4％

1,276

111,4240.8％-16.7％

500

63,500

7.2％

7.9％

500

6,926

7.8％

9.3％

700

9,000

6.3％

8.0％

532

8,454

7.4％

4.2％

700

9,500

14

3

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(3) Earnings Plan

- Composition ratio of operating profit: Ratio of the core Machinery business is forecast to increase from 66% (¥6.0 billion)
in FY2022 (final year of Phase 2) to 81% (¥10.7 billion) in FY2025- Operating profit is forecast to approximately double for the Group as a whole and triple for the Machinery businesscompared with FY2016 (base year)

Comparison of operating profit composition ratios

Note: “Composition ratio” refers to the percentage of the total after deducting others and adjustments.

Results

FY2025 Image(Medium-Term Business Plan 2025)

FY2016

Real Estate

FY20225%Compared to Medium-TermBusiness Plan 2025 image
Operating profit

Real Estate

Compared to MediumTerm Business Policy 2022
Operating profit

Real state

19%

Materials
business

28%

1.4 times

Operatingprofit¥6.5 billion

Machinerybusiness

53%

9%

Materials
business25%¥3.5billion

1.4 times

Operatingprofit¥9.0 billion

Machinery business66%¥6.0billion

Compared to Medium-TermBusiness Plan 2025 image
Operating profit

Approx. 2 times

Materials
business

14%

OperatingprofitApprox.
13billion

Machinery business81%¥10.7billion
154(1) Machinery

Basic strategy
for investment

Industrial Machinery- Further strengthen our engineering capabilities and promote
cross-departmental initiatives and DX to move away frombeing a standalone equipment manufacturer- Build a business foundation in the domestic market bypursuing the United Nations Sustainable Development Goals(SDGs) and working on infrastructure development projects
that help resolve social issues (such as disasterprevention/mitigation)

Key priorities--

Strengthen product competitiveness and promote
proposal-based sales to win orders for section plant
construction projects (pumps, material machinery)
Establish earnings base through stock businesses(pumps, material machinery), including by utilizing
customer information management to enhance services

Generate demand and promote sales of SICON®
enclosed hanging conveyors

Slurry Pumps (LK3)

Crushers

SICON® Enclosed Hanging
Conveyor

Industrial Machinery: Business (product) portfolio* Comparison of FY2021 resultsand FY2025 image

Pumps

Belt Conveyor

Increasing profit due to growth and improved
profitability

Improving growth and higher profit despite flat
profitability

Material Machinery

steel structures and Pump equipment

Improving profitability and higher profit despite
lower growth

Increasing growth and higher profit (stemming fromincreased sales) despite declining profitability

Ｙ：

Growth Potential-

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

Belt Conveyor

Material Machinery

Pumps

Pump
equipment

Steelstructures

X：Profitability

16

4

Industrial Machinery(1) Machinery

Pumps
Market-Demand for renewal of aging facilities

environment-

Improving energy efficiency and longer service life

Slurry pumps- Targeting the nonferrous and chemicals
industries (where we anticipate solid stockbusiness earnings), we will introduce a
strategic machine (new, high-efficiency slurrypump (LK3)), aiming to replace othercompanies’ pumps

Mainmeasures- Strengthen our sales structure in Chugoku andShikoku regions

Pump equipment

Material machinery-

Demand for renewal of aging facilities

Contribute to customers’ energy savings
through higher efficiency and lower runningcosts due to longer service life

Infrastructure business-

Increasing trend in construction for national land
resilience, disaster prevention/mitigation
measures, etc.

-

Growing awareness of belt conveyors as analternative to dump trucks for transporting earthand sand, resulting in increased inquiries

West Japan

Belt conveyors- Leverage our strategic machines (new screens,crushers (GEOPUS C3 and HPGR)) to tap newmarkets; expand market share and increase
stock by encouraging customers to replace
other companies’ equipment with ours

- Win orders for currently planned projects(new/renewal dam construction, river flood
control, tunnel construction, etc.) and solicit
increased inquiries

Utilize IoT technology- Utilize IoT technology to formulate sales
proposals for section plants aimed at
productivity improvement and rationalization,and promote servitization (kotozukuri)- Further penetrate East Japan (where we havea good track record) and expand market sharein West Japan

Expectedoutcomes

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

Improved productivity of customers’
operations and more stable and reliable
operation of customers’ production
facilities- Emphasize features of SICON® (enclosed
hanging conveyors) as a problem-solving
method of transporting earth and sand; aim fordomestic procurement and production of parts

Steel structures- Stabilize business profit by attracting firm
orders for steel bridges and increasing salesof steel segments

Safe and environmentally friendly method
for transporting earth and sand174(1) Machinery

Basic strategy
for investment-

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

Rock Drill Machinery

Build an “FRD model” to achieve customer
success throughout the product life cycle

Key priorities- Establish FRD model in Japan
Strengthen Life Cycle Support businessHydraulic breakers- Strengthen sales of parts and consumables- Commercialize support program for blast hole drills*- Establish trade-in resale business (tunnel drill jumbos, hydrauliccrawler drills)

Hydraulic crawler drills

Rock Drill Machinery: Business (product) portfolio

Increase in profit due to higher growth and profitability

Maintenance services
Profit to remain mostly unchanged despite sluggish growth and profitability- Emphasize centralized sales and production

Production: Reduce costs through centralized production, enhance quality(to minimize complaints), and shorten lead times

Blast hole drills

小型

Ｙ
：

Growth Potential

Japan: Strengthen sales in the quarry market and deepen our presence inthe demolition equipment market through concentrated sales ofsmall hydraulic crushers and concentrated rollout of demolition
equipment in the Tokyo Metropolitan Area

* Comparison of FY2021 resultsand FY2025 image

Blast hole drills, hydraulic breakers, hydraulic crushers, tunnel drill jumbos,
auxiliary parts*Blast hole drills:
General term for hydraulic/pneumatic crawler drills, down-the-hole drills, andattachment drills

Overseas: Cultivate North American market for large blast hole drills andstep up development of attachment drills as frontline machines fordeveloping the Southeast Asian quarry market (hydraulic machinery)

Tunnel drill jumbos

Hydraulicbreakers

Auxiliaryparts

Tunnel drill
jumbosHydrauliccrushers

Maintenanceservices

X：Profitability

184(1) MachineryRock Drill Machinery-

Shortage of operators due to declining birth rate andaging population-

North America: Stimulus measures and infrastructure
investments have led to strong demand for wide-area
rentals-

Demolition machine market: Increasing need forlarge-sized, high-impact equipment-

Tunnel projects: Strong demand for automatedconstruction as a safety measure

Europe: Prolonged invasion of Ukraine and inflation willslow growth, but urban development projects will continue
to drive rental demand--

Hydraulic crawler drills-

Semi-automatic drilling function added

Hydraulic breakers, hydraulic crushers

Mainmeasures-

Japan: Shortage of skilled workers has led to anincrease in demand for services to improve theskills of workers-

Demand for parts in regions where the Company’s
machines are operating

Southeast Asia: Demand expected to shift from pneumatic
to hydraulic machines as GDP grows in each nation

Deeply penetrate market for large machines,
which accounts for around 80% of North
American market-

Concentrate on selling large blast hole drills
Establish base in western region to strengthen sales to explosive
crusher contactors

Establish FRD model in Japan
Strengthen sales of parts-

Review pricing of parts-

Review overseas distributorship agreements-

Improve sales skills in stock business-

Cultivate the demolition equipment market in Tokyo
Metropolitan Area (step up sales of large and super-large
breakers)-

Tap the breaker market in Europe

Strengthen maintenance service business-

Concentrate on sales of small hydraulic crushers (for roadgeneral contractors and aggregate recycling)--

Reconsider maintenance system for hydraulic breakers
and hydraulic crushers-

Reinforce preventive maintenance services for hydrauliccrawler drills and propose maintenance services for
specific purposes

Tunnel-related products-

Step up sales of autonomous and labor-saving products(fully automatic drill jumbos, rock bolting machine(BOLTINGER), concrete spraying machines with erectors,
etc.)

Achieve highly efficient and safe operation
through automation and mechanization

Increase market share in the four countries driving European
market (France, United Kingdom, Italy, and Germany) bystrengthening and expanding our network of dealers for rental
equipment

Develop the Southeast Asian quarry market--

Expectedoutcomes

Life Cycle Support (LCS)

Overseas

Japan
Marketenvironment

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

Highlight the superiority of Furukawa-brand drifters by promoting
attachment drills as frontline machines (Indonesia, Cambodia,etc.)
Launch small and medium-sized hydraulic crawler drills (currently
under development) targeting Southeast Asian market (2025)

Promote shift to hydraulic machines in theSoutheast Asian quarry market

Develop business model (for customer success)-Hydraulic crawler drills: Leverage operational support
systems to commercialize support programs (intangible
services, subscription services)

Ensure customer success by providing
technologies and other solutions

194(1) Machinery

Basic strategy
for investment

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

UNIC Machinery- Securing stable earnings from domestic sales
and expanding earnings from overseas sales
Japan: Enhance competitiveness by increasing
product functionality and added value andimproving service systems
Overseas: Strengthening product, sales, andservice technology capabilities
UNIC craneMini-crawler cranes

UNIC Machinery: Business (product) portfolio

Key priorities- Japan: Strengthen competitiveness by increasing thefunctionality and added value of UNIC cranes and UNIC
carriers and expand sales of mini-crawler cranes and ocean
cranes (cranes for ships), which do not depend on trucks- Overseas: Develop mounted cranes (large models) and newmini-crawler cranes, expand sales network, and strengthen
sales capabilities of dealers- Promote further automation, quality improvement, and cost
reductions at the Sakura Works

Growth Potential- Reinforce product development system and promote R&D toaddress the electrification of trucks

Ｙ：

UNIC carriers* Comparison of FY2021 resultsand FY2025 image

UNIC cranes (Japan and overseas)

Mini-crawler cranes(Japan and overseas)

Japan: Increase in growth and higher profit(stemming from increased sales) despite
declining profitability
Overseas: Increase in profit due to higher
growth and profitability

Increase in profit due to higher growth and profitability bothin Japan and overseas

UNIC
carriers

UNIC carriers
Increase in profit due to higher growth and profitability

Mini-crawler
crane(Overseas)

Mini-crawler cranes(Japan)UNIC crane(Japan)UNIC crane(Overseas)- Strengthen our service system
X：Profitability

204(1) Machinery

UNIC Machinery
Japan

Marketenvironment-

Recovery in truck production
Growing interest in decarbonization (adopting electrification trend)
Intensifying price competition between large suppliers
Existence of niche markets (e.g., narrow sites)
Concerns about labor shortages and shrinking market size due todeclining birth rate and aging population

UNIC cranes ,UNIC carriers- Step up direct sales and expand sales of products unique to UNIC
- Adapt to vehicle electrification trend

Mini-crawler cranes
Mainmeasures- Increase sales of high-value-added products (battery-operated models,disassembled models, etc.) for rental market; narrow target customers(electric power companies, general contractors, etc.) to focus on andcultivate new markets

ocean cranes- Reinforce contacts with existing customers and develop new ones

Expectedoutcomes

Ensure safe, efficient, and energy-saving operations
at diverse sites

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

Overseas-

Increasing demand due to infrastructure development
Growing rental market
Growing demand for labor-saving machinery
Multifunctioning of productUncertain economic conditions (geopolitical risks, inflation, etc.)

Southeast Asia, East Asia, Middle East, Oceania- Increase sales of UNIC cranes (large and super-large machines) anddevelop dealer network

North America- Increase sales of mini-crawler cranes for rental market

Europe- Strengthen dealer salesforce to restore market share

Product development- Expand lineup of large and super-large machines

Build win–win relationships with dealers in eachcountry to improve customer satisfaction
21

4Electronics(2) Materials

Basic strategy
for investment-

Expand business in strategic products
to increase earnings- Growing demand for heat-dissipating materials forsemiconductor manufacturing equipment, etc.
Marketenvironment

Key priorities-

Aluminum nitride ceramics: Increase production
capacity to reinforce sales-

Optical products: Develop and commercialize special
optical material products; increase sales of diffractive
optical elements (DOEs) for laser processing-

High-purity metallic arsenic: Establish stable supply
system that reflects market needs as a category leader-

Coils: Develop products and expand sales in growthareas to bolster earnings

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)- Growing market for high-quality laser processing- Semiconductor market recovering moderately (due toincreased demand for 5G communications, sensors, etc.)
despite deterioration in the short term

Aluminum nitride ceramics- Swiftly commission facilities to achieve 1.6-fold increase inproduction capacity; consider investments for further
production increases; develop distinctive productsMainmeasuresOptical components- DOEs: Aim for mass adoption of laser processing- Consolidate operations to stabilize profitability

High-purity metallic arsenic- Maintain our facilities preventively and ensure stableprocurement of raw materials

Expectedoutcomes
Aluminum nitride ceramics

Laser head equippedwith DOEs

Contribute to enhanced functionality ofelectronic devices, etc.

High-purity metallic arsenic

22

4

Chemicals(2) Materials

Basic strategy
for investment-- Domestic market for chemical products generally
shrinking due to population decline

Increase earnings from existing products andnurture and expand newly developed products
Marketenvironment

Key priorities

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)- Growing demand for batteries and related electronic
components due to shift to EVs and automation of
automobiles, etc.

- Increasing demand for servers, etc., due to advancesin networks stemming from ICT innovation

Existing products- Sulfuric acid: Strengthen differentiation by emphasizing high-quality
sulfuric acid
- Cupric oxide: Capacity enhancement to increase sales

Sulfuric acid

Newly developed products- Strengthen differentiation by emphasizing high-quality
sulfuric acid for battery applications for which demand is
growing- Metallic copper powder: Expand sales channels by developing new
applications
Main
measures

Cupric oxide- Increase production capacity and expand sales to address
rising demand for packaged substrates used in servers, etc.

Metallic copper powder- Shorten the process from sample rollout to formal adoption
and develop applications other than conductive applications(such as multilayer ceramic capacitors (MLCCs)) to expand
sales channels
Cupric oxide

Manufacturing plant ofsulfuric acid

Metallic copper powder

Expectedoutcomes

Help realize an environmentally friendly andprosperous society234(2) Materials

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

Metals(3) Real estate business
Real estate business

MetalsBasic strategy
for investment-

Basic strategy
for investment

Make efforts to optimize the entrusted
smelting business

Key priorities

Key priorities- Promote lease business using site of former Furukawa Osaka Building- Pursue profitability and stabilization of the entrusted smelting business-Termination of entrusted copper smelting agreement with Onahama Smelting andRefining Co., Ltd. (March 31, 2023)- Strategically reduced scale of operations and drastically cut unprofitable exports- Obtained clear outlook on fundamental review of entrusted smelting business
Metals segment profit
and loss infection

Net sales
Operating profit

FY2022

FY2023(Forecast)-- Partial sale of the Company’s interest in the siteVS FY2022
difference¥111.4 billion¥74.8 billion(-)¥36.6 billion¥1.2 billion¥0.5 billion(-)¥0.7 billion

Sell our interest in the site

Copper output
Assumption
Copper price(¥0.09 billion)
70,186 ton
8,551 $/mt(¥0.5 billion)
48,592 ton
8,000 $/mt(+¥0.41 billion)(-)21,594 ton-

Elevation of the south side
[Condominiums, hotel, restaurants]
Building height

Lease business planned- Plan to use proceeds from the sale to leasea hotel and some residential units scheduled
to be built on the site

Overview of planned building project
Location(Operating profit
exclude price effect)- Stabilize earnings from Muromachi Furukawa Mitsui
Building and effectively utilize other real estate holdings,
including site of former Furukawa Osaka Building

Site area
Site area

2-4-1 Dojimahama, Kita-ku, Osaka City and other land

Approx. 5,755 m2
Approx. 5,755 m2

Main uses

Construction of condominiums, hotel,
restaurants, and offices

No. of floors

40 above grounds; 1 basement level

Scheduled completion May 31, 2027
Note: Information shown in the architectural plan and the elevation isbased on current plans and may be subject to change in the future.

Exchange rate

135.5 yen/$

135.0 yen/$

-

24

5

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(1) Sustainability Initiatives

Basic policies- The Furukawa Company Group has positioned efforts toward sustainability as one of its most important management issues. In addition
to contributing to help realize a sustainable society, the Group is committed to achieving sustainable growth and enhancing medium tolong term corporate value by establishing a robust corporate foundation for growth and resolving social issues through its business.

Furukawa Company Group’s Approach to Sustainability

Defensive sustainability

Proactive sustainability
The Group will create corporate value andcontribute to the creation of social value by
developing infrastructure and providing
products, technologies, and services that help
to resolve social issues

Materiality (Key Issues)
CSV issues- Providing environmentally friendly products,
technologies, and services- Contributing to the resolution of customer
issues- Contributing to the creation of a safe andcomfortable society, including infrastructuredevelopment

Sustainable growth and enhancing
medium to long term corporate value

Proactive
aspects

Resolve social issues
through businessContribute to the SDGs through“marketing-based management”
that incorporates CSV perspectives

Maximize opportunities(Improve profitability)

Defensive
aspects

Establish a robust corporate
foundation for growth(expansion and strengthening of
non-financial capital)

Enhance corporate value
by emphasizing businesspractices that reflect CSR
and ESG issues

Reduce risk
(Reduce capital costs)

The Group will strengthen and expand its enterpriserisk management system and enhance corporate
value by emphasizing business practices thatreflect CSR/ESG issues recognized and to besolved by the Group.

Materiality (Key Issues)
CSR/ESG issues

E-

Promotion of climate change countermeasures in ourbusiness activities

Environment -S
SocialG

Promotion of biodiversity preservation activities-

Development of a safe and rewarding work environmentthat takes health into consideration-

Recruitment and development of diverse human resources-

Promotion of management that respects human rights-

Development of an enterprise risk management system

Governance -Strengthen and expand Groupwide risk
management system

Thorough compliance25

5

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(1) Sustainability Initiatives“Marketing-based management” thatincorporates CSV perspectives

The Group will help achieve the United Nations Sustainable Development Goals (SDGs) by practicing“marketing-based management” that incorporates CSV perspectives and creating “social value” by improvingsocial infrastructure and realizing a safe, environmentally friendly, and prosperous society.

[SDG Contribution Targets by Segment]
Segment

Industrial
Machinery
Rock Drill
Machinery

SDGs with High Contribution Levels ( ◎: Especially Important; 〇: Important)

Main Products, Technologies,
and Services

Pumps

Belt
conveyors

Steelbridgesand steelstructures

Tunnel drill
jumbosHydrauliccrawler
drillsHydrauliccrushers

UNIC
cranesMini-crawler
cranesOcean
cranesUNIC Machinery

MetalsElectronics

◎

◎

○

◎

◎

○

◎

◎

◎

◎

◎

◎

◎

◎

○

◎

○

Electrolytic
copperHigh-purity
metallic
arsenide

Coils

Opticalcomponents(lenses)

Sulfuric acid

Aluminumsulphate

FerroussulfateChemicals

○
○

◎

○

◎

○

◎

26

5

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(1) Sustainability Initiatives-

Formulate roadmap toward carbon neutrality and conduct scenario analysis in line with TCFD recommendations aimed ataddressing the CSR/ESG issue of “Promotion of climate change countermeasures in our business activities”-

Promote initiatives to address the CSV issue of “Provision of environmentally friendly products, technologies, and services”-

Enhance disclosure of information related to these initiatives

Addressing decarbonization
CO2 reduction plan-

CO2 reduction measures at each production site

Implement a carbon-neutral declaration-

Work to complete a roadmap by FY2025
Use of electricity derived from renewable energy sources, etc.

External
evaluations

Climate-related disclosure
Express our support for the Task Force on
Climate-related Financial Disclosures (TCFD)
recommendations-

Initiate scenario analyses in the Metals segment and Rock Drill
Machinery segment-

Promote disclosure of relevant information-

Inclusion in SRI/ESG indexes-

Improving our external ESG-related evaluations27

5(2) Allocation of Management Resources

Basic policies- Prioritizing investments to achieve sustainable growth andenhance corporate value over the medium to long terms

Basic policies

Allocation of operating cash flows-

While aiming to establish a robust financial base, wewill make capital investments to enhance corporate
value over the medium to long terms-

Endeavor to allocate operating cash flows in
consideration of shareholder returns- Provide stable and continuous returns to shareholders- Investment come from retained earnings and cash flows- Invest in alliances and M&As through optimal financing(including sale of strategic shareholdings)

Appendix “Medium-Term Business Plan 2025”
ofdisclosed in the past.)(This is Allocationa document
operating cash flows

Support enhanced manufacturing

Cash in

Capital investments

Cash out
Growth investments

Accelerate growth strategies
and business transformation

Help resolve social issues

Invest in DX

Invest in R&D

Ensure competitive advantage

Invest in
intellectual property

Enhance
corporatevalue¥10 billion
Consolidated
operatingcash flows

Create a rewarding company

Invest inhuman capital

3-year cumulative
total images¥40 billion

Capitalinvestments¥20 billion＋
Maintenance and renewal¥10 billion

Dividends¥7 billion
Share buybacks

Achieve discontinuous growth

Invest in alliances and M&As

Decarbonization, environmental impact
reduction, and respect for human rights
in the value chain

Invest insustainability initiatives

Reduction ofinterestbearing debt

¥3 billion¥10 billion
28

5

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)(2) Allocation of Management Resources

Capital investments

Invest in R&D

Capital investments-

Invest in R&D

Capital investment plan to support enhanced manufacturing
Our capital investments will center on the Machinery business,
which is positioned as our core business-

Promote the commercialization and industrialization ofdevelopment projects that help resolve social issues
Revitalize our on-site capabilities to improve productivity

Capital investments allocation image

Key priorities
Machinery business¥14 billion

Other ¥1 billion-

Develop automation technology aimed at labor savings-

Develop materials and mass production technology for solid
electrolytes used in all-solid-state batteries-

3-yearcumulative total

Develop machinery-related products and technologies thatdeliver higher efficiency and lighter weight and otherwise help
reduce environmental impact-

Effectively utilize DX¥20 billion-

Fully deploy our Engineer HR Development Program to step up
development of engineers who will lead the next generation

Materials business¥5 billion

29

5

Appendix “Medium-Term Business Plan 2025”
Investment(Thisin is a document disclosed in the past.)
intellectual property(2) Allocation of Management Resources
Investment in intellectual property-

Develop systems that utilize IP information to secure acompetitive advantage-

Effectively operate within the IP landscape*FY2022

Properly assess the value of our entire business, including IP,
based on the technology rights of each operating

Key priorities--

Revitalize IP activities (discovery, acquisition,
maintenance, and utilization of rights) to enable us tovisibly evaluate our technological capabilities
Assess the value of the industrial property rights we holdin order to utilize them effectively
Collect and analyze patent information and formulate
corporate strategies accordingly

FY2023

FY2025

Surveys/Research

Establish projects topromoteUpskill

Foster common
understanding

Start Operation
Top-down*When determining their management and business strategies, companies conduct analyses thatincorporate IP information into their management and business information. The results (overview of
the current situation, future prospects, etc.) are shared with top executive and business managers,
who obtain feedback and hold discussions and consultations for planning and consideration.

Breakdown of Intellectual Property Rights Held (Domestic) by segment
Materials 32%

Machinery 68%
Technology Division(Machinery)

10%

Technology Division(Materials)

Industrial Machinery

29%

Chemicals

1%

Electronics

1%

Furukawa C&F

1%

10%
FY2022590 patentRock Drill Machinery

20%

UNIC Machinery

28%
30

5

(2) Allocation of Management Resources

Investment
in human capital
人的資本への投資
基本戦略
Basic
policies-

Create a rewarding company where all
employees can maximize their abilities andcreate new value

Human resource development policy

Appendix “Medium-Term Business Plan 2025”

Investment in(This is a document disclosed in the past.)
human capital

Indicators/targets related to HR development policy
Hire diverse human resources

Indicator/target

Ratio of women among new graduates hired forgeneral positions*1

20%

Female manager ratio*2

3%

Ratio of new hires in management/general
positions who are experienced*140%Latest result
13.00%(Applicable period: Join in FY2023)

3.33%(Applicable period: March 31, 2023)

43.75%(Applicable period: Joined in FY2022)

For the Group to resolve social issues through its
business activities and achieve sustainable growthand increase corporate value, it is essential todevelop human resources with a variety of
personalities.

Ratio of employees with subsidiaries*3

Adoption of
statutory
employment rate

(Applicable period: FY2022)

Develop human resources who are willing totake on challenges and act autonomously

Indicator/target

Latest result

Commit to developing a diverse workforce capableof acting autonomously and willing to embrace thechallenge of creating new value.

Training hours per year*1

1,500 hours

Number of trainees per year*1

3,600 persons

2.49%

843.6 hours(Applicable period: FY2022)

2,506 persons(Applicable period: FY2022)*1 Applicable: Company-registered employees*2 Applicable: Consolidated*3 Among consolidated subsidiaries subject to employment ratio system for persons with disabilities315(2) Allocation of Management Resources
In-house environmental improvement policy
The Group is committed to creating comfortable workplaces
where diverse human resources can perform their duties
safely and efficiently while maintaining a rewarding andhealthy work environment

Investment in
human capital

Appendix “Medium-Term Business Plan 2025”
Investment in(This is a document disclosed in the past.)

alliances and M&As

Investment in alliances and M&As
- Consider alliances and M&As with peripheral companies that fill the gaps in ourbusiness and create continuity, as well as with companies that will form the fourthpillar of our core Machinery business

Key priorities Consider and enter alliances and M&As to achieve sustainable expansion
and growth

Indicators/targets related to internal environment improvement policy
Indicator/target
Ratio of male employees taking
childcare leave*

80%

Ratio of employees returning towork after childcare leave*

100%

Ratio of employees receiving
health checkups*

100%

Anomalyobservation
rate*
Recognition as Health andProductivity Management
Organization※

Latest result
72.20%(Applicable period: FY2022)

87.50%(Applicable period: FY2022)

Industrial
Machinery

UNIC

Rock Drill

99.96%(Applicable period: FY2022)

Age 40 and over:Less than 50%(Applicable period: FY2021)

Under age 40:
Less than 30%(Applicable period: FY2021)

Obtain “White 500”
certification

 Pursue synergies in PMI

61.20%

45.40%
×(Year 2023)

Approach to alliances and M&As
Fill the gaps in our businessIndustrial
Machinery

Rock Drill

Fourth pillar of our core companies

UNIC

Industrial
Machinery

Rock Drill

UNIC

Fourthpillar*Applicable: Company-registered employees

325(2) Allocation of Management Resources

Appendix “Medium-Term Business Plan 2025”
Investment in(ThisDXis a document disclosed in the past.)

Investment in DX-

Promote DX to support accelerating the Group’s growth strategy and operational reforms that reflects market needs and supports reliable
and attractive manufacturing and value creation

DX Promotion
SystemUtilize digital technology to accelerate sustainable management

Aim

Established the DX Promotion Committee in April 2023 to create a Groupwide DX promotion system.
The committee is responsible for developing and promoting DX strategies on a Groupwide level.

Board ofDirectors-

faced by customers, society, and the Group and help create value- Improve and optimize technologies required to enhance productivity and improve anddevelop products- Improve services and create new business model

Representative
Director-

DX Promotion Committee

Manufacturing
Subcommittee

Servitization
Subcommittee

Engage in manufacturing (monozukuri) and servitization (kotozukuri) to resolve issues

Operational
ReformSubcommittee

Promote operational reforms

Automation
Continuation andadvancement ofinitiatives

Productivity
enhancement

Labor-saving
Efficiency
enhancement

Optimization“Marketing-based management” that incorporates CSV perspectives

Examples of specific initiatives to date-

Development of fully automatic drill jumbo
Automatic adjustment of driller to optimum position
Complete mechanization of dedicated rock bolting machines
Start of DX of carrier manufacturing process
Introduction of sales support tools

Opportunities/risks surrounding our business environment for practicing sustainable management
Pursuit of improved productivity and efficiency

Cost reduction

Safety and security

Frontline labor shortage
Transfer of technology and know-how

Workstyle reforms
Harsh working conditions33

5(2) Allocation of Management Resources

Investment in DX

Cross-organizational DX development and promotion

Servitization

Use 3D datato achieve overall
optimization of production
processes andimprove productivity

Build business models
and create
revenue streams throughcustomer value creation

Using digitizationand digital tools
for business improvements
and workstyle reforms

Launch Groupwide DX initiatives with view tobuilding smart factories
Utilize 3D data to improve productivity- Target overall optimization of manufacturing
processes from design to production- Aim for streamlined manufacturing- Visualization of know-how of skilled workers andUtilize digital technology to create new
business model
Enhance value-added services-

Operational
reformOperational reform- Analyze machine operating data, provide
technical support and proposals

Make Groupwide business improvements andworkstyle reforms- Expand electronic circulation and workflow- Utilize digital platforms to improve operational
efficiency and advance business

Develop and strengthen DX human resources

Common challenges in DX promotion

Fostering DX human resources
Improving the IT infrastructure

Expected outcomes

Servitization(kotozukuri)

Medium-Term Business Plan 2025: Measures
Manufacturing(monozukuri)

Three Pillars of DX Promotion

Manufacturing

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)-

Use external training to develop IT human resources
Improve digital literacy of staff working on DX
Flexibly secure IT personnel from outside- Accelerated product development ⇒ Engineering DX- Improved labor productivity and reduced costs
establishment of technology transfer
Profits generated for customers (through increased
productivity, optimization of maintenance operations,and predictive maintenance) and relationships of trust
reinforced-

New sources of revenue- Streamlined information management and decisionmaking and paperless operations- Efficient sales promotion, service improvement, andvisualization of sales activities-

Effective digital technology use and enhanced business management
capabilities due to improved IT/DX literacy of employees-

Enhanced problem-solving capabilities through reinforcement of inhouse ICT human resources-

Steady promotion of DX through reinforcement of ICT humanresources (who are in short supply)

Infrastructure, security, governance-

Build common information infrastructure for the Group
Prepare for cyberattacks and reinforce information security
Shift to cloud computing and/or environment for basic-operations
systems- Establish information infrastructure indispensablefor promoting DX

34

Appendix “Medium-Term Business Plan 2025”(This is a document disclosed in the past.)

References ROE Tree for Creating Corporate ValueManagement / Performance Indicators

Breakdown into Strategies and Measures
Be disclosed

In-Group KPI (Performance Indicator [Improvement Driver])
Expand business areas; develop
new businesses and products
Increase sales prices (unit prices)

Gross margin

ROA
Net income
Total assets

Operating margin

ROE
Net income
Net worth

Control sales prices

Reduce defective products

Reorganize operations; sell businesses
Operating income
Reduce labor costs
Net sales

Operating profit

Total asset
turnoverTotal assets

Net sales
Total assets

Automate; save labor
Increase productivity

Unit price (selling price)
Variable cost reduction amount / rate
Defective product amount / rate

Current asset
turnoverRatio of labor costs to net sales
Sales per employee
Operating profit per employee

Reduce R&D expenses

Ratio of R&D expenses to net sales

Reduce sales promotion and advertisingexpenses

Ratio of sales promotion / advertising expenses
to net sales

Increase sales volume

Increase market share

Sales volume; market share

Increase accounts receivable
turnoverShorten accounts receivable collection period

Accounts receivable turnover period(days/months)

Reduce costs;
improve cost-effectiveness

Efficiency

Priority sectors / regions (domestic, overseas,
countries) / new products/strategic products /new businesses

Reduce logistics costs

SG&A expense ratio
Operating profit
is usedinstead of net
income incalculations ofsegment-specifc
ROA.

Develop new businesses; launch new(high-value-added) products

Promote centralized purchasing
Reduce cost-of-sales ratio

Profitability

Expand business areas

KPIs into Frontline Operations(Examples)

Shorten lead times
Increase inventory turnover

Lead time (time for delivery)
Inventory turnover period (days / months)

Reduce inventories
Disposal of slow-moving inventories for a long time

Improve capacity utilization rate
Improve capital investment efficiency

Fixed asset turnover

Tangible fixed asset turnover period(days/months)

Sell idle assets

Total assets
Financial leverage

Net worthInterest-bearing debt ratio
Interest-bearing
debt / EBITDA
Interest coverage ratio

Increase cash dividends

Increase shareholder returns

Share repurchase and retirement
Increase interest-bearing debt

Total shareholder return ration/a (no set KPI)

35